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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
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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
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