TY  - GEN
AU  - Carlsson, Mikael
AU  - Messina, Julián
AU  - Skans, Oskar Nordström
TI  - Firm-Level Shocks and Labor Flows
PY  - 2021
Y1  - 2021/01/08
DO  - 10.18235/0003002
AB  - 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.
UR  - https://doi.org/10.18235/0003002
ER  -