Labor market responses to temporary aggregate demand shocks are commonly analyzed and discussed in terms of changes in employment and unemployment. However, it can be seriously misleading to ignore the interrelated behavior of hours worked.Work hours can be altered relatively speedily and...

This paper deals with the heterogeneous employment outcome at the plant level in Swedish manufacturing over the period 1972-96. Non-negligible gross flows of jobs is found to be a pronounced feature in Swedish manufacturing, but as compared to results on U.S. data, the average pace of job...