Abstract: Using a band pass filter, this paper estimates plant-level job
flows at different frequencies and examines the characteristics of the high
frequency (transitory) and low frequency (permanent) component flows. Because
high frequency employment movements, which likely result in changes in the
utilization of plant assets, and low frequency movements, which likely coincide
with the restructuring of plant assets, result in different costs to the economy,
understanding their separate behavior is important. High frequency plant-level
employment fluctuations account for the majority of cyclical movements in
aggregate manufacturing employment, but the temporal separation between job
destruction and job creation is more pronounced for low frequency job flows,
suggesting that permanent job flows reflect a more protracted employment
adjustment process. To facilitate the evaluation of job flow models, many of
which describe either transitory or permanent job flows, time series of job flows
at different frequencies are presented in the appendix.
Keywords: Job flows, employment fluctuations, frequency decomposition
Full paper (506 KB PDF)
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Last update: February 11, 2002
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