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.