Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237454 
Year of Publication: 
2021
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1158
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper analyzes how labor ows respond to permanent idiosyncratic shifts in rm-level production functions and demand curves using very detailed Swedish micro data. Shocks to rms physical productivity have only modest eects on rm-level employment decisions. In contrast, the paper documents rapid and substantial employment adjustments through hires and separations in response to rm-level demand shocks. The choice of adjustment margin depends on the sign of the shock: rms adjust through increased hires if these shocks are positive and through increased separations if the shocks are negative.
Subjects: 
Technology
Demand
Job flows
Worker flows
JEL: 
D22
J63
J23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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