Abstract
R. Jason Faberman (2004) "Gross Job Flows over the
Past Two Business Cycles: Not all 'Recoveries' are Created Equal."
I compare the behavior of job creation and job destruction over the past two economic downturns. Both periods have brief but sharp rises in job destruction followed by flat net
job growth. The dynamics underlying these slow recoveries differ
drastically. In 1991-92, job destruction is slow to decline. In 2001, job
creation falls dramatically and remains persistently low through 2003. I
find this trend qualitatively similar in both manufacturing and service
industries. I also find that neither a structural shift of jobs across
industries nor increased trade liberalization is a consistent explanation
for the recent lack of growth. Instead, the evidence suggests that a large
drop in business investment may explain the decline in job creation.
Last Modified Date: June 21, 2004
|
Back to Top
