However, studies by academic researchers have not found clear evidence that worker turnover has increased over time. In this article, Shigeru Fujita shows that there is a long-run downward trend in the separation rate into unemployment and examines several factors that help account for this long-run decline. He argues that the aging of the labor force has played an important role in the trend. He also explains, using an economic model, how the declining separation rate can result from workers’ response to the increased sense of job insecurity.

This article appeared in the Fourth Quarter 2012 edition of Business Review.

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