Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
966310 | Journal of Macroeconomics | 2007 | 29 Pages |
Abstract
This paper studies the differences in the dynamics of employment between the nondurable and durable goods sectors. It shows that in the US economy, the durables sector exhibits a higher volatility of employment growth, and a higher relative volatility of job destruction to job creation, than does the nondurables sector. To account for these patterns, a two-sector Mortensen-Pissarides-type model is developed and two types of technology shocks-aggregate and investment-specific-are considered. The numerical results suggest that the model can capture many important features of the sectoral job flows.
Related Topics
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Authors
Jenn-Hong Tang,