@misc{29619,
title = {Firm-Level Shocks and Labor Flows},
author = {Carlsson, Mikael and Messina, Julián and Skans, Oskar Nordström},
year = {2021},
doi = {10.18235/0003002},
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.},
url = {https://doi.org/10.18235/0003002}
}