The evolution of excess job reallocation in the U.S.

► We use a dynamic factor model to study the nature of U.S. excess job reallocation. ► The national factor accounts for 57% of the excess job reallocation variability. ► The national allocation component is the main factor for small businesses. ► The state allocation component is the main driving force for large businesses. ► National and state allocation factors will be an essential element in job flow theories.