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The effect of restructuring on unemployment

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  • Andrew Figura
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    Abstract

    This paper finds that the permanent job losses associated with industrial restructuring have significantly boosted the variance of unemployment, causing it to rise much higher in recessions than it would have without cyclically correlated restructuring. Moreover, the influence of restructuring has increased noticeably in the 1980s and 1990s, acting to increase economic instability at a time when other factors were operating to reduce it.

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    File URL: http://www.federalreserve.gov/pubs/feds/2003/200356/200356abs.html
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    File URL: http://www.federalreserve.gov/pubs/feds/2003/200356/200356pap.pdf
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    Bibliographic Info

    Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2003-56.

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    Date of creation: 2003
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    Handle: RePEc:fip:fedgfe:2003-56

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    Keywords: Unemployment;

    This paper has been announced in the following NEP Reports:

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    23. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
    24. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
    25. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
    26. 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.).
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    Cited by:
    1. Nicolas Fleury & Fabrice Gilles, 2013. "An evaluation of the impact of industrial restructuring on individual human capital accumulation in France (1956-1993)," TEPP Working Paper 2013-09, TEPP.

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