Working Paper

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.

https://doi.org/10.17016/2380-7172.1964

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2017-04-20

Number: 2017-04-20-2