@misc{29718,
title = {Research Insights: How Do Job and Worker Flows Respond to Firms' Idiosyncratic Technology and Demand Shocks?},
author = {Carlsson, Mikael and Messina, Julián and Skans, Oskar Nordström},
year = {2021},
doi = {10.18235/0003038},
abstract = {Permanent demand shocks are the main driver of labor adjustments. A one standard deviation demand shock increases the net employment rate by 6 percentage points in the long run, while a technology shock increases it by 0.5. Transitory demand shocks have much smaller impacts. When hit by a permanent demand shock, firms adjust fast and symmetrically. Most of the labor change occurs within a year. If the shock is positive, firms adjust by increasing hires. If the shock is negative, they increase separations without reducing hires.},
url = {https://doi.org/10.18235/0003038}
}