Technology shocks and the labour-input response: Evidence from firm-level data

Arbeitspapier

We study the relationship between technology shocks and labor input on Swedish firm-level data using a production function approach to identify technology shocks. Taking standard steps yields a contractionary contemporaneous labor-input response in line with previous studies. This finding may, however, be driven by measurement errors in the labor-input variable. Relying on a unique feature of our data set, which contains two independently measured firm-specific labor input measures, we can evaluate the potential bias. We do not find any evidence supporting that this bias would conceal any true positive contemporaneous effect. The results thus point away from standard flexible-price models and towards models emphasizing firm-level rigidities.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Sveriges Riksbank Working Paper Series ; No. 198

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Business Fluctuations; Cycles
• Subject: Technology Shocks ; Labor Input ; Business Fluctuations ; Micro Data ; Technologie ; Schock ; Arbeitsproduktivität ; Betriebswirtschaftliche Produktionsfunktion ; Verarbeitendes Gewerbe ; Theorie ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Carlsson, Mikael ; Smedsaas, Jon
• Event: Veröffentlichung
• (who): Sveriges Riksbank
• (where): Stockholm
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/81861
• Last update: 10.03.2025, 11:44 AM CET