Sectoral shifts and aggregate unemployment: additional empirical evidence

Samson, Lucie

doi:10.1080/00036849000000084

Cited by 13 publications

(5 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Early empirical work testing the Lilien model for the postwar U.S. economy did not provide strong support for the sectoral shifts hypothesis (Loungani 1986;McCallum 1987;Samson 1990). Either monetary variables or oil shocks proved to be the main determinants of unemployment fluctuations over the business cycle.…”

Section: Sectoral Shifts and The Macroeconomymentioning

confidence: 98%

The Short‐Run Relationship Between Sectoral Shifts and U.S. Labor Market Fluctuations

Blackley

1997

Southern Economic Journal

View full text Add to dashboard Cite

Monthly data for the aggregate U.S. economy are used to assess competing hypotheses concerning the relationship between sectoral employment shifts and fluctuations in the unemployment rate. It is shown that sectoral shifts are caused by major work stoppages, aggregate fluctuations unrelated to permanent sectoral shifts, a reallocation‐timing effect, and allocative shocks at the sectoral level. Larger employment shifts are associated with higher unemployment during slow growth periods and lower unemployment during above‐average growth periods. Models are presented which demonstrate that both aggregate and allocative shocks are causes of cyclical increases in unemployment.

show abstract

Section: Sectoral Shifts and The Macroeconomymentioning

confidence: 98%

The Short‐Run Relationship Between Sectoral Shifts and U.S. Labor Market Fluctuations

Blackley

1997

Southern Economic Journal

View full text Add to dashboard Cite

show abstract

“…Following this idea, many researchers have tried to take account of the differential responses of sectoral employment to aggregate shocks. Samson (1990) and Mills et al (1995), among others, use expected and unexpected money growth to purge the sectoral reallocation measure from aggregate influences. Mills et al (1996) extend the approach and purge relative sectoral employment by regressing it on a variety of explanatory factors, and Abraham and Katz (1986) use step-wise purging methods -which are criticized for over-purging, however.…”

Section: Measuring Sectoral Reallocationmentioning

confidence: 99%

Unemployment and Labor Reallocation in Europe

Hogrefe

Sachs

2014

SSRN Journal

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Unemployment and labor reallocation in Europe * Jan Hogrefe * * ZEW MannheimAndreas Sachs * * * ZEW MannheimOctober 20, 2014 AbstractWe ask whether sectoral shocks and the subsequent labor reallocation are responsible for unemployment within selected European economies. Our measure of sectoral labor reallocation is adjusted for aggregate influences and the remaining variation is linked to unemployment in country specific dynamic models. For Spain, the ADL-model estimation reveals a significant impact of sectoral reallocation on unemployment that goes beyond usual business cycle patterns. In Italy, there is weaker yet detectable evidence for this mechanism. In Ireland, Portugal and France, no significant influence of sector level shocks on unemployment is found. The results emphasize the potential structural supply side policies have for reducing unemployment in Spain.JEL-Classification: E24, J62, J64

show abstract

“…Purging Lilien's proxy of aggregate effects has been often suggested as an effective way to handle the observational equivalence problem. This practice amounts to filtering out aggregate effects either directly from the dispersion index (MPZ, 1995; or indirectly from the employment growth rates used to construct the index (AK, 1984 andNeelin, 1987;Samson 1990). Despite its shortcomings this method has been commonly applied in sectoral shifts analysis because of its simplicity.…”

Section: Purgingmentioning

confidence: 99%

“…There is wide variation across papers in the choice of variables included in ̃ . Some authors, like AK (1984;, Neelin (1987) and Samson (1990), use monetary aggregates while others like MPZ (1995;) resort to both real and monetary aggregates. The estimated residual from equation 7provides the purged component of .…”

Section: Purgingmentioning

confidence: 99%

“…The use of different purging procedures looks decisive. As an example, consider the mild purging technique of Samson (1990) and the careful purging approach of Neelin (1987), which provide contrasting results for the Canadian labor market. Samson uses a measure which is not totally free of aggregate impulses and that is much more variable in absolute terms because it is not normalized by any variability measure.…”

Section: Purgingmentioning

confidence: 99%

See 1 more Smart Citation

Macroeconomic Effects of Job Reallocations: A Survey

Gallipoli

Pelloni

2013

SSRN Journal

View full text Add to dashboard Cite

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.

show abstract

Sectoral shifts and aggregate unemployment: additional empirical evidence

Cited by 13 publications

References 15 publications

The Short‐Run Relationship Between Sectoral Shifts and U.S. Labor Market Fluctuations

The Short‐Run Relationship Between Sectoral Shifts and U.S. Labor Market Fluctuations

Unemployment and Labor Reallocation in Europe

Macroeconomic Effects of Job Reallocations: A Survey

Contact Info

Product

Resources

About