Full Citation

Title: Labor Market Inefficiency and Economic Restructuring: Evidence from Cross-Sectoral Data

Citation Type: Journal Article

Publication Year: 2007

ISBN:

ISSN:

DOI: 10.2307/20111961

NSFID:

PMCID:

PMID:

Abstract: The U.S. business cycle that began with the recession of 2001 featured both a “jobless recovery” and substantial structural change, leading some to ponder the “Sectoral Shift Hypothesis,” whereby restructuring purportedly creates labor market inefficiencies. Previous studies have analyzed aggregate time series, but new data permit a cross-sectoral comparison between restructuring and increased labor market inefficiency (as measured from sector Beveridge curves). This paper develops an estimation method and quantifies substantial increases in inefficiency during this period. However, contrary to the hypothesis, the increased inefficiency bears little relationship to the extent of sectors' structural change.

Url: https://www.jstor.org/stable/20111961?seq=1#page_scan_tab_contents

User Submitted?: No

Authors: Cotti , Chad, D; Drewianka, Scott

Periodical (Full): Southern Economic Journal

Issue: 1

Volume: 74

Pages: 214-238

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Other

Countries: