Technology shocks and the Labor-Input response: Evidence from firm-level data
2007 (English)In: Journal of Money, Credit and Banking, ISSN 0022-2879, E-ISSN 1538-4616, Vol. 39, no 6, 1509-1520 p.Article in journal (Refereed) Published
We study the relationship between technology shocks and labor input on Swedish firm-level data using a production function approach to identify technology shocks. Taking standard steps yields a contractionary contemporaneous labor-input response in tine with previous studies. This finding may, however, be driven by measurement errors in the labor-input variable. Relying on a unique feature of our data set, which contains two independently measured firm-specific labor input measures, we can evaluate the potential bias. We do not find that this bias conceals any true positive contemporaneous effect. The results thus point away from standard flexible-price models and toward models emphasizing firm-level rigidities.
Place, publisher, year, edition, pages
2007. Vol. 39, no 6, 1509-1520 p.
technology shocks, labor input, business fluctuations, micro data
Economics and Business
IdentifiersURN: urn:nbn:se:uu:diva-143634ISI: 000249148200010OAI: oai:DiVA.org:uu-143634DiVA: diva2:390811