Early tests of the embodiment hypothesis, which suggests that new capital is more productive than old, may have been biased due to the incorrect use of age, rather than utilized age of capital. This study, which attempts to correct for the potential mismeasurement bias by using the utilized age of capital in the analysis, finds evidence that the embodiment hypothesis is valid.

omy 86 (Aug. 1978), 673-700. , A Note on Maximum Likelihood Estimation of the Expectations Model of the Term Structure, Journal of Monetary Economics 5 (1979), 133-143. Sargent, Thomas J., and Neil Wallace, Rational Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule, Journal of Political Economy 83 (Apr. 1975), 241-254. Zellner, Arnold, An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests for Aggregation Bias, Journal of the American Statistical Association 57 (1962), 348-368.

We use a unique data set to investigate whether a matching model can describe turnover in an accounting firm. The main focus of the article is to determine whether the probability of separation from employment varies in the way described by Jovanovic. The evidence suggests that as tenure increases both terminations and quits follow the predicted pattern.

We utilize a large employer‐level panel dataset to explore the links between gross job flows and gross worker flows. Our findings have relevance for models of job creation and job destruction, and labor reallocation. We find churning flows (the difference between worker and job flows at the level of the employer) to be high, pervasive, and highly persistent within employers, suggesting that they arise as a correlate of an equilibrium personnel policy. We find the dynamic relationship between job and worker flows to be quite complex: lagged job flows raise churning flows, and lagged churning flows reduce employment growth.

Productivity Differences across Employers: The Roles of Employer Size, Age, and Human Capital by John C. Haltiwanger, Julia I. Lane and James Spletzer. Published in volume 89, issue 2, pages 94-98 of American Economic Review, May 1999

Integrated Longitudinal Employer-Employee Data for the United States by John J. Abowd, John Haltiwanger and Julia Lane. Published in volume 94, issue 2, pages 224-229 of American Economic Review, May 2004