scholarly journals Job Destruction and Propagation of Shocks

2000 ◽  
Vol 90 (3) ◽  
pp. 482-498 ◽  
Author(s):  
Wouter J den Haan ◽  
Garey Ramey ◽  
Joel Watson
Keyword(s):  
Labor Market ◽  
Flow Data ◽  
Job Destruction ◽  
Aggregate Shocks ◽  
Destruction Rate ◽  
Dynamic General Equilibrium Model ◽  
Capital Adjustment ◽  
Cyclical Fluctuations ◽  
Propagation Effects ◽  
Labor Market Matching

This paper considers propagation of aggregate shocks in a dynamic general-equilibrium model with labor-market matching and endogenous job destruction. Cyclical fluctuations in the job-destruction rate magnify the output effects of shocks, as well as making them much more persistent. Interactions between capital adjustment and the job-destruction rate play an important role in generating persistence. Propagation effects are shown to be quantitatively substantial when the model is calibrated using job-flow data. Incorporating costly capital adjustment leads to significantly greater propagation. (JEL E24, E32)

scholarly journals FINANCIAL SHOCKS, JOB DESTRUCTION SHOCKS, AND LABOR MARKET FLUCTUATIONS

2017 ◽  
Vol 23 (3) ◽  
pp. 1137-1165 ◽  
Author(s):  
Francesco Zanetti
Keyword(s):  
Labor Market ◽  
General Equilibrium ◽  
Equilibrium Model ◽  
Driving Forces ◽  
General Equilibrium Model ◽  
Job Destruction ◽  
Financial Shocks ◽  
Dividend Payout ◽  
Destruction Rate ◽  
Market Variables

This paper investigates the effect of financial shocks using a general equilibrium model that links the firm's flows of financing with labor market variables. The results show that financial shocks have sizeable effects on debt, dividend payout, and wages. Shocks to the job destruction rate are important in explaining fluctuations in unemployment. The analysis also investigates the underlying driving forces of some key comovements in the data and finds shocks to the job destructions rate important.

scholarly journals Marginal Jobs, Heterogeneous Firms, and Unemployment Flows

2013 ◽  
Vol 5 (1) ◽  
pp. 1-48 ◽  
Author(s):  
Michael W. L Elsby ◽  
Ryan Michaels
Keyword(s):  
Labor Market ◽  
Cross Section ◽  
Employment Growth ◽  
Heterogeneous Firms ◽  
Job Destruction ◽  
Worker Flows ◽  
Cyclical Fluctuations ◽  
Search And Matching Model ◽  
The Business Cycle ◽  
Aggregate Dynamics

This paper introduces a notion of firm size into a search and matching model with endogenous job destruction. The outcome is a rich, yet analytically tractable framework that can be used to analyze a broad set of features of both the cross-section and aggregate dynamics of the labor market. The model provides a coherent account of the distributions of employer size and employment growth across establishments, the amplitude and propagation of cyclical fluctuations in worker flows, the negative comovement of unemployment and vacancies, and the dynamics of the distribution of employer size over the business cycle. (JEL E24, E32, J63, J64)

scholarly journals Self-employment as a stepping stone to better labor market matching: a comparison between immigrants and natives

2020 ◽  
Vol 86 (4) ◽  
pp. 479-501
Author(s):  
Magdalena Ulceluse
Keyword(s):  
Labor Market ◽  
Comparative Analysis ◽  
Labour Force ◽  
Demographic Characteristics ◽  
Labour Force Survey ◽  
Self Employment ◽  
Barriers To Employment ◽  
Labor Market Matching ◽  
Shed Light ◽  
The Eu

AbstractThe paper investigates the relation between overeducation and self-employment, in a comparative analysis between immigrants and natives. Using the EU Labour Force Survey for the year 2012 and controlling for a list of demographic characteristics and general characteristics of 30 destination countries, it finds that the likelihood of being overeducated decreases for self-employed immigrants, with inconclusive results for self-employed natives. The results shed light on the extent to which immigrants adjust to labor market imperfections and barriers to employment and might help explain the higher incidence of self-employment that immigrants exhibit, when compared to natives. This is the first study to systematically study the nexus between overeducation and self-employment in a comparative framework. Moreover, the paper tests the robustness of the results by employing two different measures of overeducation, contributing to the literature of the measurement of overeducation.

scholarly journals Another Look at the Macroeconomic Information Content of Aggregate Earnings: Evidence from the Labor Market

2020 ◽  
Author(s):  
Rebecca N. Hann ◽  
Congcong Li ◽  
Maria Ogneva
Keyword(s):  
Labor Market ◽  
Information Content ◽  
Job Creation ◽  
Job Destruction ◽  
Special Items ◽  
Macroeconomic Information ◽  
Earnings Components ◽  
Aggregate Earnings ◽  
Core Earnings ◽  
Near Term

We examine the macroeconomic information content of aggregate earnings from the labor market's perspective. We use insights from the labor economics literature to characterize the information contained in aggregate GAAP earnings and its components that is relevant for predicting aggregate job creation and destruction. Our results suggest that not only does aggregate earnings news convey information about future labor market aggregates, but its information content is incremental to other macroeconomic variables at near-term horizons. Further, the source of this information stems primarily from two earnings components: aggregate core earnings and special items. Shocks to core earnings signal persistent changes in economy-wide profitability that predict aggregate job creation up to four quarters ahead, while shocks to special items predict job destruction up to one quarter. Taken together, our results suggest that aggregate earnings contain useful information about future labor market conditions, with the nature of such information varying across earnings components.

Forecasting the Impact of Automation on Jobs

2021 ◽  
pp. 21-40
Author(s):  
Cynthia Estlund
Keyword(s):  
Labor Market ◽  
Job Creation ◽  
Job Destruction ◽  
Advanced Education ◽  
Comparative Advantages ◽  
Human Skills ◽  
Minority View ◽  
The Impact

Chapter 2 digs more deeply into the outlook for job destruction and job creation, and adds some theory and data to Chapter 1’s anecdotes about how machines can replace human workers. It reports an emerging consensus among leading scholars that automation is already contributing to the polarization, or hollowing out, of the labor market by destroying more middle-skill jobs than it is creating. And it reports on the more concerning prediction—still a minority view though more than plausible—that machines are destined to produce overall net job losses as they continually whittle away at humans’ comparative advantages. The chapter arrives at a working premise for the rest of the book that straddles those two forecasts: We are facing a future of less work—at least less work for those with ordinary human skills and without advanced education, and perhaps less work overall. While that straddle might seem untenable, either forecast is similarly bleak for most workers—if we do not respond constructively; and when it comes to the shape of a constructive response, both forecasts point largely in the same direction.

Aggregate Recruiting Intensity

2018 ◽  
Vol 108 (8) ◽  
pp. 2088-2127 ◽  
Author(s):  
Alessandro Gavazza ◽  
Simon Mongey ◽  
Giovanni L. Violante
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Equilibrium Model ◽  
Random Search ◽  
Firm Dynamics ◽  
Hiring Decisions ◽  
Aggregate Shocks ◽  
Fast Growing ◽  
The Great Recession ◽  
Matching Efficiency

We develop an equilibrium model of firm dynamics with random search in the labor market where hiring firms exert recruiting effort by spending resources to fill vacancies faster. Consistent with microevidence, fast-growing firms invest more in recruiting activities and achieve higher job-filling rates. These hiring decisions of firms aggregate into an index of economy-wide recruiting intensity. We study how aggregate shocks transmit to recruiting intensity, and whether this channel can account for the dynamics of aggregate matching efficiency during the Great Recession. Productivity and financial shocks lead to sizable procyclical fluctuations in matching efficiency through recruiting effort. Quantitatively, the main mechanism is that firms attain their employment targets by adjusting their recruiting effort in response to movements in labor market slackness. (JEL D22, E24, E32, J23, J41, J63, M51)

scholarly journals Business Volatility, Job Destruction, and Unemployment

2010 ◽  
Vol 2 (2) ◽  
pp. 259-287 ◽  
Author(s):  
Steven J Davis ◽  
R. Jason Faberman ◽  
John Haltiwanger ◽  
Ron Jarmin ◽  
Javier Miranda
Keyword(s):  
Low Frequency ◽  
Inflow Rate ◽  
Job Destruction ◽  
Destruction Rate ◽  
Industry Level ◽  
Level Data ◽  
Industry Level Data

Unemployment inflows fell from 4 percent of employment per month in the early 1980s to 2 percent by the mid 1990s. Using low frequency movements in industry-level data, we estimate that a 1 percentage point drop in the quarterly job destruction rate lowers the monthly unemployment inflow rate by 0.28 points. By our estimates, declines in job destruction intensity account for 28 (55) percent of the fall in unemployment inflows from 1982 (1990) to 2005. Slower job destruction accounts for similar fractions of long-term declines in the rate of unemployment. (JEL E24, E32, J64)

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