On the employment effects of productivity shocks: The role of inventories, demand elasticity, and sticky prices

• 成果类型: Article
• 署名作者: Chang, Yongsung; Hornstein, Andreas; Sarte, Pierre-Daniel
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Richmond; University of Rochester; Yonsei University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2009.02.004
• 发表日期: 2009
• 页码: 328-343
• 关键词: productivity; EMPLOYMENT; Inventory investment; sticky prices

摘要

Whether technological progress raises or lowers employment in the short run has been the subject of much debate in the recent years. We show that cross-industry differences in inventory holding costs, demand elasticities, and price rigidities potentially all affect employment decisions in the face of productivity shocks. In particular, the employment response to a permanent productivity shock is more likely to be positive the less costly it is to hold inventories, the more elastic industry demand is, and the more flexible prices are. Using data on 458 4-digit U.S. manufacturing industries over the period 1958-1996, we find statistically significant effects of variations in inventory holdings and demand elasticities on short-run employment responses, but less conclusive evidence pertaining to the effects of measured price stickiness. (C) 2008 Elsevier B.V. All rights reserved.