The importance of age for the reallocation of labor. Evidence from Swedish linked employer-employee data 1986-2002

Using employer-employee data covering the whole Swedish economy over a uniquely long time period from 1986 to 2002, we examine how job and worker flows have been distributed across age groups. We find that job and worker flows vary by age groups, not only with respect to magnitude and variation, but with respect to direction as well. The differences between the age groups are mainly driven by the job creation rates. Further, estimating a multinomial logistic model, we investigate the importance of age for leaving, changing or entering a new employment. Even though controlling for a number of factors, estimated age effects are substantial.