Firm-Level Shocks and Labour Flows.

We analyse how labour flows respond to permanent idiosyncratic shifts in firm-level production functions and demand curves using very detailed Swedish micro data. Shocks to firms' physical productivity have only modest effects on firm-level employment decisions. In contrast, we document rapid and su...

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Publicado en:Economic Journal Vol. 131; no. 634; pp. 598 - 624
Autores principales: Carlsson, Mikael, Messina, Julián, Nordström Skans, Oskar
Formato: Artículo
Publicado: Oxford University Press / USA Feb2021
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Feb2021
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      pub: Oxford University Press / USA
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        atl: Firm-Level Shocks and Labour Flows.
      aug:
        au:
          Carlsson, Mikael
          Messina, Julián
          Nordström Skans, Oskar
        affil:
          Uppsala University, UCLS & Sveriges Riksbank , Sweden
          Inter-American Development Bank, USA & IZA , Germany
          Uppsala University, IFAU, UCLS, Sweden & IZA , Germany
      su: Demand function
      sug:
        subj: Demand function
      ab: We analyse how labour flows respond to permanent idiosyncratic shifts in firm-level production functions and demand curves using very detailed Swedish micro data. Shocks to firms' physical productivity have only modest effects on firm-level employment decisions. In contrast, we document rapid and substantial employment adjustments through hires and separations in response to firm-level demand shocks. The choice of adjustment margin depends on the sign of the shock: firms adjust through increased hires if these shocks are positive and through increased separations if the shocks are negative.
      pubtype: Academic Journal
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    language: English
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