This paper analyzes the effects of demand shifts within and between local labor markets on unemployment and employment … large fractions of the observed variation in unemployment and employment rate levels and changes across markets. Within …-area shifts cause much smaller and insignificant amounts of unemployment if they are between-industry, while shifts within areas …

establishments; b) the amplitude and propagation of cyclical fluctuations in flows between employment and unemployment; c) the … negative comovement of unemployment and vacancies in the form of the Beveridge curve; and d) the dynamics of the distribution …

explaining the persistent high unemployment that prevailed in interwar Britain. It develops a new measure of sectoral shifts that … aggregate unemployment during the interwar period, even after controlling for a variety of shocks to aggregate demand, and for … roughly one-half of the variation in unemployment, suggesting an important role for sectoral shifts …