Aggregate Employment Fluctuations with Microeconomic Asymmetries /
Campbell, Jeffrey R.
Aggregate Employment Fluctuations with Microeconomic Asymmetries / Jeffrey R. Campbell, Jonas D.M. Fisher. - Cambridge, Mass. National Bureau of Economic Research 1996. - 1 online resource: illustrations (black and white); - NBER working paper series no. w5767 . - Working Paper Series (National Bureau of Economic Research) no. w5767. .
September 1996.
We provide a simple explanation for the observation that the variance of job destruction is greater than the variance of job creation: job creation is costlier at the margin than job destruction. As Caballero [2] has argued, asymmetric employment adjustment costs at the establishment level need not imply asymmetric volatility of aggregate job flows. We construct an equilibrium model in which (S,s)-type employment policies respond endogenously to aggregate shocks. The microeconomic asymmetries in the model can dampen the response of total job creation to an aggregate shock and cause it to be less volatile than total job destruction. This is so even though aggregate shocks are symmetrically distributed.
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Mode of access: World Wide Web.
Aggregate Employment Fluctuations with Microeconomic Asymmetries / Jeffrey R. Campbell, Jonas D.M. Fisher. - Cambridge, Mass. National Bureau of Economic Research 1996. - 1 online resource: illustrations (black and white); - NBER working paper series no. w5767 . - Working Paper Series (National Bureau of Economic Research) no. w5767. .
September 1996.
We provide a simple explanation for the observation that the variance of job destruction is greater than the variance of job creation: job creation is costlier at the margin than job destruction. As Caballero [2] has argued, asymmetric employment adjustment costs at the establishment level need not imply asymmetric volatility of aggregate job flows. We construct an equilibrium model in which (S,s)-type employment policies respond endogenously to aggregate shocks. The microeconomic asymmetries in the model can dampen the response of total job creation to an aggregate shock and cause it to be less volatile than total job destruction. This is so even though aggregate shocks are symmetrically distributed.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.