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Trend Employment Growth And The Bunching Of Job Creation And Destruction

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  • Christopher L. Foote

Abstract

Research using U.S. manufacturing data finds that job destruction fluctuates more over time than job creation, but some new data indicate that this behavior is not shared in growing sectors, where job creation varies more. An explanation for this finding based on the interaction between (S,s)-type adjustment and trend employment growth delivers some tight predictions for the relationship between trend growth and the volatility of creation relative to destruction. Although it scores some notable successes, the simple (S,s)-based model augmented with a low-frequency trend cannot fully account for the strength of the empirical relationship between relative gross-flow volatility and trend growth across one-digit industries. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Bibliographic Info

Article provided by MIT Press in its journal The Quarterly Journal of Economics.

Volume (Year): 113 (1998)
Issue (Month): 3 (August)
Pages: 809-834

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Handle: RePEc:tpr:qjecon:v:113:y:1998:i:3:p:809-834

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