Arbeitspapier
Firm-level shocks and labor adjustments
We analyze how firms adjust their labor in response to idiosyncratic shifts in their production function and demand curves using a unique data-set of Swedish manufacturing firms. We show that permanent shocks to firm-level demand is a main driving force behind both job and worker reallocation. In contrast, shocks to physical productivity and temporary demand shocks have a very limited impact on firm-level employment despite being important determinants of other firm-level fundamentals. We also present evidence suggesting that the adjustment to permanent demand shocks is fairly unconstrained. Most notably, firms primarily downsize through increased separations of both short- and long-tenured workers even when they could have adjusted their employment through reduced hires.
- Sprache
-
Englisch
- Erschienen in
-
Series: Sveriges Riksbank Working Paper Series ; No. 293
Labor Demand
Labor Turnover; Vacancies; Layoffs
Technological Change: Choices and Consequences; Diffusion Processes
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Demand
Job Creation
Rigidities
Worker Flows
Messina, Julián
Nordström Skans, Oskar
- Handle
- Letzte Aktualisierung
-
12.07.2024, 13:20 MESZ
Objekttyp
- Arbeitspapier
Beteiligte
- Carlsson, Mikael
- Messina, Julián
- Nordström Skans, Oskar
- Sveriges Riksbank
Entstanden
- 2014
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