Is Job Stability Declining in the U.S. Economy?

Abstract

Using Current Population Survey data, the authors examine changes in job stability during the 1980s. For consecutive four-year periods during 1979–91, they present estimates of four-year retention rates for workers with varying levels of employer-specific seniority. Retention rates of low-seniority workers rose between 1979–83 and 1983–87 but fell between 1983–87 and 1987–91. Retention rates for 1987–91 were typically lower than those for 1979–83, suggesting a secular decline in job stability during the 1980s.