This paper examines the cyclicality of worker flows across different experience and tenure levels in Canada. Utilizing data from the Labour Force Survey, this study estimates how individual job-finding, separation probability and wage being hired vary over business cycles, conditional on labour-market experience and job tenure. The results indicate that the job-finding and separation rates are more sensitive to business cycles for younger workers. This paper finds that experience is a major contributor to the cyclical fluctuations in employer-to-employer probabilities, whereas tenure is a major contributor to the cyclicality of employment-to-nonemployment probabilities. Furthermore, tenure does not explain the cyclicality of hiring wages for those transitioning from another job or from non-participation, but it does for those hired from unemployment. Although young workers are often hired at lower wages during economic downturns, their wage growth following job-to-job transitions does not seem to be disproportionately affected.

Worker Flows, Business Cycles, Life Cycle, Hiring Wage, Wage Growth After Job-to-job Transitions