Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81861
Authors: 
Carlsson, Mikael
Smedsaas, Jon
Year of Publication: 
2006
Series/Report no.: 
Sveriges Riksbank Working Paper Series 198
Abstract: 
We study the relationship between technology shocks and labor input on Swedish firm-level data using a production function approach to identify technology shocks. Taking standard steps yields a contractionary contemporaneous labor-input response in line with previous studies. This finding may, however, be driven by measurement errors in the labor-input variable. Relying on a unique feature of our data set, which contains two independently measured firm-specific labor input measures, we can evaluate the potential bias. We do not find any evidence supporting that this bias would conceal any true positive contemporaneous effect. The results thus point away from standard flexible-price models and towards models emphasizing firm-level rigidities.
Subjects: 
Technology Shocks
Labor Input
Business Fluctuations
Micro Data
JEL: 
C33
D24
E32
Document Type: 
Working Paper

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