The cyclical behavior of job creation and job destruction: a sectoral model

Jeremy Greenwood, Glenn MacDonald () and Guang-Jia Zhang

No 88, Discussion Paper / Institute for Empirical Macroeconomics from Federal Reserve Bank of Minneapolis

Abstract: Three key features of the employment process in the U.S. economy are that job creation is procyclical, job destruction is countercyclical, and job creation is less volatile than job destruction. These features are also found at the sectoral (goods and services) level. The paper develops, calibrates, and simulates a two sector general equilibrium model including both aggregate and sectoral shocks. The behavior of the model economy mimics the job creation and destruction facts. Sectoral shocks play a significant role in determining the aggregate level of nonemployment.

Keywords: Business cycles; Labor turnover (search for similar items in EconPapers)
Date: 1994
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=86 (application/pdf)
http://www.minneapolisfed.org/research/DP/DP88.pdf

Related works:
Journal Article: The Cyclical Behavior of Job Creation and Job Destruction: A Sectoral Model (1996)
Journal Article: The cyclical behavior of job creation and job destruction: A sectoral model (1995)
Working Paper: The Cyclical Behavior of Job Creation and Job Destruction: A Sectoral Model (1994)
Working Paper: The Cyclical Behavior of Job Creation and Job Destruction: A Sectoral Model (1994)
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:88

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 ).