Monetary shocks and job flows: evidence from disaggregated data
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This paper uses a structural near-VAR to examine the effect of monetary shocks on industry-level job creation and job destruction. I find asymmetry in the job flows’ responses to a positive monetary shock for disaggregated industries in the manufacturing, mining and services sectors. These findings indicate that monetary shocks trigger changes in job reallocation and point that monetary policy has important allocative effects. Yet, a test for the absence of job reallocation reveals that monetary shocks have a significant effect on job reallocation for a limited number of industries within these sectors. Moreover, this effect becomes largely insignificant after accounting for data mining.
KeywordsMonetary shocks Job flows Asymmetry
JEL ClassificationE24 E32 E52
Compliance with ethical standards
Conflict of interest
Mohamad B. Karaki declares that he has no conflict of interest.
This article does not contain any studies with human participants or animals performed by the author.
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