Job Reallocation and Unemployment in Equilibrium
Abstract: Job reallocation in the U.S.--the sum of job creation and job destruction across employers--has been declining over several decades. This piece looks at the relationship between job reallocation and the long-run rate of unemployment ("LRU") both theoretically and empirically. In this piece I show how declines in job reallocation can coincide with higher or lower unemployment– the sign and magnitude of the relationship is ambiguous.
File(s): File format is text/html https://www.federalreserve.gov/econres/notes/feds-notes/job-reallocation-and-unemployment-in-equilibrium-20170420.htm
Part of Series: FEDS Notes
Publication Date: 2017-04-20