The Cyclical Behavior of Job Creation and Job Destruction
Panel studies show that job creation and job destruction coexist at all phase of the business cycle. In this paper, we develop a model of endogenous job destruction in response to persistent idiosyncratic shocks and incorporate the model into he transactions cost (matching) approach to equilibrium job creation and wage determination. Second, we examine the dynamic stochastic implications of the model for co-movement between job creation, job destruction, and the employment growth induced by a common aggregate shock to productivity. Finally, a simulation of the model for a reasonable parametrization demonstrates that it can explain cyclical properties of US Manufacturing data.
|Date of creation:||Feb 1992|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.kellogg.northwestern.edu/research/math/
More information through EDIRC
|Order Information:|| Email: |
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.:
- Davis, Steven J & Haltiwanger, John C, 1992.
"Gross Job Creation, Gross Job Destruction, and Employment Reallocation,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(3), pages 819-63, August.
- Steve J. Davis & John Haltiwanger, 1991. "Gross Job Creation, Gross Job Destruction and Employment Reallocation," NBER Working Papers 3728, National Bureau of Economic Research, Inc.
- Steve J. Davis & John Haltiwanger, 1991. "Gross job creation, gross job destruction and employment reallocation," Working Paper Series, Macroeconomic Issues 91-5, Federal Reserve Bank of Chicago.
- Christiano, Lawrence J, 1990. "Solving the Stochastic Growth Model by Linear-Quadratic Approximation and by Value-Function Iteration," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(1), pages 23-26, January.
- Edward C. Prescott, 1986.
"Theory ahead of business cycle measurement,"
102, Federal Reserve Bank of Minneapolis.
- Prescott, Edward C., 1986. "Theory ahead of business-cycle measurement," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 25(1), pages 11-44, January.
- Edward C. Prescott, 1986. "Theory ahead of business cycle measurement," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall, pages 9-22.
- Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
- Gary Hansen, 2010.
"Indivisible Labor and the Business Cycle,"
Levine's Working Paper Archive
233, David K. Levine.
- Caballero, Ricardo J & Hammour, Mohamad L, 1994.
"The Cleansing Effect of Recessions,"
American Economic Review,
American Economic Association, vol. 84(5), pages 1350-68, December.
- Kenneth L. Judd, 1991. "Minimum weighted residual methods for solving aggregate growth models," Discussion Paper / Institute for Empirical Macroeconomics 49, Federal Reserve Bank of Minneapolis.
When requesting a correction, please mention this item's handle: RePEc:nwu:cmsems:982. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fran Walker)
If references are entirely missing, you can add them using this form.