Journal Article

Measuring labor market turbulence


Abstract: Increased economic turbulence leads to increases in the full employment level of unemployment. This article proposes a measure of economic turbulence using data on employment shares across broad industry categories. The effect of the business cycle on employment shares has been removed to allow for a measure of turbulence that reflects only idiosyncratic shocks to the various sectors.

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 1997

Volume: 21

Issue: May

Pages: 2-14