Economics at your fingertips  

Business Volatility, Job Destruction, and Unemployment

Steven Davis (), Jason Faberman (), John Haltiwanger, Ron Jarmin () and Javier Miranda

American Economic Journal: Macroeconomics, 2010, vol. 2, issue 2, 259-87

Abstract: Unemployment inflows fell from 4 percent of employment per month in the early 1980s to 2 percent by the mid 1990s. Using low frequency movements in industry-level data, we estimate that a 1 percentage point drop in the quarterly job destruction rate lowers the monthly unemployment inflow rate by 0.28 points. By our estimates, declines in job destruction intensity account for 28 (55) percent of the fall in unemployment inflows from 1982 (1990) to 2005. Slower job destruction accounts for similar fractions of long-term declines in the rate of unemployment. (JEL E24, E32, J64)

JEL-codes: E24 E32 J64 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/mac.2.2.259
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45) Track citations by RSS feed

Downloads: (external link) (application/pdf) (application/zip) (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Business Volatility, Job Destruction, and Unemployment (2008) Downloads
Working Paper: Business Volatility, Job Destruction, and Unemployment (2008) Downloads
Journal Article: Business volatility, job destruction and unemployment (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

American Economic Journal: Macroeconomics is currently edited by Simon Gilchrist

More articles in American Economic Journal: Macroeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

Page updated 2020-03-31
Handle: RePEc:aea:aejmac:v:2:y:2010:i:2:p:259-87