EconPapers    
Economics at your fingertips  
 

Aggregate employment fluctuations with microeconomic asymmetries

Jeffrey Campbell and Jonas Fisher

No 112, Discussion Paper / Institute for Empirical Macroeconomics from Federal Reserve Bank of Minneapolis

Abstract: We provide a simple explanation for the observation that the variance of job destruction is greater than the variance of job creation: job creation is costlier at the margin than job destruction. As Caballero [2] has argued, asymmetric employment adjustment costs at the establishment level need not imply asymmetric volatility of aggregate job flows. We construct an equilibrium model in which (S,s)-type employment policies respond endogenously to aggregate shocks. The microeconomic asymmetries in the model can dampen the response of total job creation to an aggregate shock and cause it to be less volatile than total job destruction. This is so even though aggregate shocks are symmetrically distributed.

Keywords: Downsizing of organizations; Employment (Economic theory) (search for similar items in EconPapers)
Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
https://www.minneapolisfed.org/research/dp/dp112.pdf Full Text (application/pdf)

Related works:
Journal Article: Aggregate Employment Fluctuations with Microeconomic Asymmetries (2000) Downloads
Working Paper: Aggregate employment fluctuations with microeconomic asymmetries (1998) Downloads
Working Paper: Aggregate Employment Fluctuations with Microeconomic Asymmetries (1996) Downloads
Working Paper: Aggreagate Employment Fluctuations with Microeconomic Asymmetries (1996)
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: https://EconPapers.repec.org/RePEc:fip:fedmem:112

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper / Institute for Empirical Macroeconomics from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Jannelle Ruswick ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-30
Handle: RePEc:fip:fedmem:112