FIRM HETEROGENEITY AND WORKER TURNOVER

Previous empirical analyses of job mobility focus on worker rather tha n firm characteristics. This paper exploits a unique data set on enter prise employment. We describe sectoral differences in turnover rates a nd in the persistence of turnover. We also present evidence of persist ent turnover differences at the level of the individual firms - a resu lt that is expected if firms have managers with differing ability to s creen workers. When we consider the consequences to the firm of such t urnover, we discover that high turnover firms are less likely to survi ve.