This paper analyzes how labor ows respond to permanent idiosyncratic shifts in rm-level production functions and demand curves using very detailed Swedish micro data. Shocks to rms physical productivity have only modest eects on rm-level employment decisions. In contrast, the paper documents...

We develop a measure of labour market opportunities for heterogenous types of worker, exploiting information on their suitability different jobs encoded in historical patterns of worker mobility. We provide a theoretical foundation for our measure, which features naturally in a general random...