Inter- and intrasectoral shocks: effects on the unemployment rate.
Intersectoral shocks require resource reallocation across sectors while intrasectoral shocks require resource reallocation within sectors. A crucial difference between these shocks is that the former require much higher adjustment costs than the latter. Using accounting data to calculate returns on...
| Publicado en: | Journal of Labor Economics Vol. 15; pp. 376 - 402 |
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| Autor principal: | |
| Formato: | Artículo |
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University of Chicago Press
April 1997
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Intersectoral shocks require resource reallocation across sectors while intrasectoral shocks require resource reallocation within sectors. A crucial difference between these shocks is that the former require much higher adjustment costs than the latter. Using accounting data to calculate returns on capital in manufacturing industries, I generate proxies for these shocks. I find that the magnitude of intrasectoral shocks is much greater than that of intersectoral shocks but intersectoral shocks explain the aggregate unemployment rate better than intrasectoral shocks. I also find that intersectoral shocks are more closely related to the unemployment rate in the later part of the sample considered. Copyright 1997 by the University of Chicago. All rights reserved. |
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