The theory of the dynamics of labor demand is based either on the costs of adjusting the level of employment or on the … - maximizing path of employment demand and the Euler equation whose parameters we estimate. Identifying the two types of costs …

We analyze how firms adjust their labor in response to idiosyncratic shifts in their production function and demand … curves using a unique data-set of Swedish manufacturing firms. We show that permanent shocks to firm-level demand is a main … driving force behind both job and worker reallocation. In contrast, shocks to physical productivity and temporary demand …

This paper analyzes how labor ows respond to permanent idiosyncratic shifts in rm-level production functions and demand … in response to rm-level demand shocks. The choice of adjustment margin depends on the sign of the shock: rms adjust …