New Stylized Facts on Occupational Employment and Their Implications: Evidence from Consistent Employment Data

30 Pages Posted: 4 Aug 2014 Last revised: 12 Aug 2016

Myungkyu Shim

Sogang University - Department of Economics

Hee-Seung Yang

Monash University - Department of Economics

Date Written: August 12, 2016

Abstract

The business cycle properties of occupational employment have not yet been extensively explored because of inconsistencies in the aggregate employment series by occupation. Using consistent aggregate hours data constructed through the method of “conversion factors,” which was developed by the U.S. Census Bureau, we provide new empirical facts on the cyclical behaviors of occupational employment and discuss their implications. First, employment of the middle-skill occupation group is negatively affected by a technology shock, while those of high-skill and low-skill groups are positively correlated with it. Second, it is the middle-skill group that experiences the largest decline in employment volatility after the mid-1980s. Last, recessions since the 1980s have heterogenous impacts on different occupations, defining the characteristics of each recession. We further discuss the value of having consistent employment data in studies of business cycles.

Keywords: Business cycle property; Occupational employment; Consistent data; Conversion factor; VAR; Employment volatility

JEL Classification: C82, E24, E32

Suggested Citation

Shim, Myungkyu and Yang, Hee-Seung, New Stylized Facts on Occupational Employment and Their Implications: Evidence from Consistent Employment Data (August 12, 2016). Available at SSRN: https://ssrn.com/abstract=2474932 or http://dx.doi.org/10.2139/ssrn.2474932

Myungkyu Shim

Sogang University - Department of Economics ( email )

35 Baekbeom-ro
Seoul, 121-742
Korea

Hee-Seung Yang (Contact Author)

Monash University - Department of Economics ( email )

Monash Business School, Monash University
Clayton, Victoria 3800
Australia
61 3 9905 2431 (Phone)

HOME PAGE: http://sites.google.com/site/heeseungyang/

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