Aggregate Reallocation Shocks, Occupational Employment and Distance

Jacob Wong ()

No 2017-09, Adelaide Economics Working Papers from Adelaide University, School of Economics

Abstract: A unique general equilibrium model featuring many occupations and aggregate shocks is created to study occupational employment dynamics by imposing a correlated TFP structure across occupations along with distance between occupations. Productivity processes across occupations are correlated with similar occupations experiencing similar fluctuations. Mobility frictions and the correlated-productivity structure produce a systematic relationship between occupational employment correlations and occupational distance that does not arise when productivity processes are independent. Using employment data and measures of task-distance between occupations from the U.S. economy, a negative relationship between the correlation of occupational employment and task-distance separating occupation-pairs is uncovered.

Keywords: Labour reallocation; Occupation switching; Task-distance (search for similar items in EconPapers)
JEL-codes: E24 J24 J31 J62 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2017-09

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