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New stylized facts on occupational employment and their implications: Evidence from consistent employment data

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  • Shim, Myungkyu
  • Yang, Hee-Seung

Abstract

The business cycle properties of occupational employment have not yet been extensively explored because of inconsistencies in the aggregate employment series by occupation. Using consistent aggregate hours data constructed through the method of “conversion factors,” which was developed by the U.S. Census Bureau, we provide new empirical facts on the cyclical behaviors of occupational employment and discuss their implications. First, employment of the middle-skill occupation group is negatively affected by a technology shock, while those of high-skill and low-skill groups are positively correlated with it. Second, it is the middle-skill group that experiences the largest decline in employment volatility after the mid-1980s. Last, recessions since the 1980s have heterogeneous impacts on different occupations, defining the characteristics of each recession. We further discuss the value of having consistent employment data in studies of business cycles.

Suggested Citation

  • Shim, Myungkyu & Yang, Hee-Seung, 2016. "New stylized facts on occupational employment and their implications: Evidence from consistent employment data," Economic Modelling, Elsevier, vol. 59(C), pages 402-415.
  • Handle: RePEc:eee:ecmode:v:59:y:2016:i:c:p:402-415
    DOI: 10.1016/j.econmod.2016.08.006
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    References listed on IDEAS

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    Cited by:

    1. Yongseok Shin & Sang Yoon (Tim) Lee & Sangmin Aum, 2017. "Waxing Jobs and Waning Industries," 2017 Meeting Papers 1618, Society for Economic Dynamics.
    2. Jüßen, Falko & Bredemeier, Christian & Winkler, Roland, 2017. "Fiscal Policy and Occupational Employment Dynamics," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168193, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Business cycle property; Occupational employment; Consistent data; Conversion factor; VAR; Employment volatility;

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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