Macroeconomic Effects of Job Reallocations: A Survey

Giovanni Gallipoli () and Gianluigi Pelloni

Review of Economic Analysis, 2013, vol. 5, issue 2, 127-176

Abstract: This paper appraises the literature on the macroeconomic effects of job reallocations. We overview different methodological approaches to the problem of observational equivalence of aggregate and sectoral shocks and draw two main conclusions. First, the non-directional nature of reallocation shocks holds the key to the fundamental identification problem. The second conclusion is that sectoral reallocation of labor has been responsible for no less that 1/4 and no more that 2/3 of the variance of aggregate unemployment in postwar data. This wide range indicates that the importance of labor reallocation may change over time, being larger at particular historical junctures.

Keywords: Labor Reallocation; Unemployment; Sectoral Shifts; Methodology; Assessment (search for similar items in EconPapers)
JEL-codes: C10 E30 J2 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Macroeconomic Effects of Job Reallocations: A Survey (2013)
Working Paper: Macroeconomic Effects of Job Reallocations: A Survey (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ren:journl:v:5:y:2013:i:2:p:127-176

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