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Gross job flows between plants and industries

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  • John C. Haltiwanger
  • Scott Schuh

Abstract

A remarkable feature of the current U.S. economic expansion has been its ability to shrug off the adverse effects of financial crises and economic slowdowns around the world for nearly two years. Recently, however, foreign-sector developments have triggered a sizable shift in the sectoral composition of U.S. employment. By early 1999, employment growth in the goods-producing sector was still humming along. Historically, substantial shifts in labor demand between sectors have been correlated with the business cycle. But recent developments are unusual and highlight our incomplete understanding of this correlation. This article provides new data and evidence on the connection between shifts in labor demand, or job reallocation, and the business cycle. The authors find that all meaningful measures of job reallocation between plants and between industries are significantly countercyclical. They also find econometric evidence that job reallocation may be an important determinant of the natural rate of unemployment, and that dispersion in relative prices may be an important determinant of reallocation

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Bibliographic Info

Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

Volume (Year): (1999)
Issue (Month): Mar ()
Pages: 41-64

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Handle: RePEc:fip:fedbne:y:1999:i:mar:p:41-64

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Keywords: Business cycles ; Labor market ; Labor mobility;

References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations

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Cited by:
  1. David Mayes & Matti Viren, 2002. "Asymmetry and the Problem of Aggregation in the Euro Area," Empirica, Springer, vol. 29(1), pages 47-73, March.
  2. Michael W. Klein & Scott Schuh & Robert K. Triest, 2002. "Job creation, job destruction, and international competition: job flows and trade: the case of NAFTA," Working Papers 02-8, Federal Reserve Bank of Boston.
  3. Michael W. Klein & Scott Schuh & Robert K. Triest, 2000. "Job Creation, Job Destruction, and the Real Exchange Rate," NBER Working Papers 7466, National Bureau of Economic Research, Inc.
  4. Lustig, Hanno & Syverson, Chad & Van Nieuwerburgh, Stijn, 2011. "Technological change and the growing inequality in managerial compensation," Journal of Financial Economics, Elsevier, vol. 99(3), pages 601-627, March.
  5. Bart Hobijn & Boyan Jovanovic, 2001. "The Information-Technology Revolution and the Stock Market: Evidence," American Economic Review, American Economic Association, vol. 91(5), pages 1203-1220, December.
  6. Jonathan Jones & Colin Wren, 2008. "Re-investment and the survival of foreign-owned plants," LSE Research Online Documents on Economics 33138, London School of Economics and Political Science, LSE Library.
  7. Katharine L. Bradbury, 1999. "Job creation and destruction in Massachusetts: gross flows among industries," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 33--52.
  8. Mayes , David G. & Virén , Matti, 2004. "Asymmetries in the Euro area economy," Research Discussion Papers 9/2004, Bank of Finland.
  9. Scott Schuh & Robert K. Triest, 2000. "Role of firms in job creation and destruction in U.S. manufacturing," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 29-44.
  10. Jaakko Kiander & Matti Virén, 2001. "Measuring Labour Market Flexibility in the OECD Countries," Empirica, Springer, vol. 28(2), pages 187-201, June.
  11. Christopher Malloy & Tobias Moskowitz, 2005. "Human Capital Risk, Stockholder Consumption, and Asset Returns," 2005 Meeting Papers 123, Society for Economic Dynamics.
  12. Wren, Colin & Jones, Jonathan, 2009. "Re-investment and the survival of foreign-owned plants," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 214-223, March.
  13. Martin-Barroso, David & Nuñez-Serrano, Juan Andres & Turrion, Jaime & Velazquez, Francisco J., 2011. "The European Map of Job Flows," MPRA Paper 33602, University Library of Munich, Germany, revised 2011.
  14. Andrew Figura, 2002. "Is reallocation related to the cycle? A look at permanent and temporary job flows," Finance and Economics Discussion Series 2002-16, Board of Governors of the Federal Reserve System (U.S.).
  15. Kiander, Jaakko & VirÉn, Matti, 2000. "Measuring Labour Market Flexibility in the OECD Countries," Discussion Papers 745, The Research Institute of the Finnish Economy.
  16. Patrick Francois & Huw Lloyd-Ellis, 2005. "Schumpeterian Restructuring," Working Papers 1039, Queen's University, Department of Economics.

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