. Productivity adjustments stabilise employment and the labour share in the long run: technological change allows firms to replenish …. We find that a demand shock is likely to lower the profit share and increase the employment rate. A supply shock in … and output however are positive in a wage-led demand regime. Furthermore, an erosion of labour market institutions dampens …

driving force behind both job and worker reallocation. In contrast, shocks to physical productivity and temporary demand …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 …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 …

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 … in response to rm-level demand shocks. The choice of adjustment margin depends on the sign of the shock: rms adjust …