Wage growth and sectoral shifts

Article Abstract:

Phillips curve analyses tend to take unemployment as linked to general economic activity, whereas it can be due to sectoral shocks, and these shocks can help understand nominal wage growth in the 1970s. The natural rate of employment was pushed up by sectoral shifts, which weakened the link between unemployment and aggregate activity. The apparent failure of the Phillips curve for the 1970s can thus be explained, though further work needs to be carried out on the 1980s. The importance of sectoral shifts indicates that the composition of unemployment also needs to be taken into account in formulating policy, rather than an approach based on fiscal and monetary policy alone.

Economic aspects, Criticism and interpretation, Wages, Wages and salaries, Phillips curve

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Cyclical fluctuations and sectoral reallocation

Article Abstract:

Periods of unemployment which begin in an economic recession are more likely to result in the unemployed person moving to another sector than are periods of unemployment which begin in an economic boom. Though this finding backs that of Loungani and Rogerson, their findings appear to overestimate the extent of countercyclicality associated with switching sectors. This study found that respecialization resulted from 34.5% of cases of unemployment begun in a recession, and 28% of cases of unemployment begun in a boom. The study is based on data from the early 1980s, and uses a risks hazard perspective.

Labor mobility

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Capital reallocation and liquidity

Article Abstract:

The capital reallocation process followed by firms to meet liquidity demands during business cycles is discussed.

United States, Management dynamics, Management, Evaluation, Capital investments, Company business management, Liquidity (Finance), Capital investment

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