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A disaggregated analysis of employment growth fluctuations in Canada

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  • Eswar Prasad
  • Alun Thomas

Abstract

This paper studies the sources of fluctuations in Canadian employment growth disaggregated by province and, within each province, by one-digit industry. Using an error components decomposition, industry-specific shocks are found to be relatively more important in explaining fluctuations in employment growth. Aggregate and province-specific shocks also play an important role, with the latter contributing about 30 percent of the explained variance in employment growth. Using a set of additional identifying assumptions, the decomposition technique is then extended to construct time series on the underlying shocks and to examine their properties. Copyright International Atlantic Economic Society 1998

Suggested Citation

  • Eswar Prasad & Alun Thomas, 1998. "A disaggregated analysis of employment growth fluctuations in Canada," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 26(3), pages 274-287, September.
    • Handle: RePEc:kap:atlecj:v:26:y:1998:i:3:p:274-287
    DOI: 10.1007/BF02299345
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    References listed on IDEAS

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    1. Altonji, Joseph G & Ham, John C, 1990. "Variation in Employment Growth in Canada: The Role of External, National, Regional, and Industrial Factors," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 198-236, January.
    2. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
    3. Robert A. Amano & R. Tiff Macklem, 1998. "Unemployment Persistence and Costly Adjustment of Labour: A Canada-US Comparison," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 138-151, February.
    4. Eswar Prasad & Alun Thomas, 1998. "Labour Market Adjustment in Canada and the United States," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 121-137, February.
    5. Stockman, Alan C., 1988. "Sectoral and national aggregate disturbances to industrial output in seven European countries," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 387-409.
    6. Norrbin, Stefan C. & Schlagenhauf, Don E., 1988. "An inquiry into the sources of macroeconomic fluctuations," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 43-70, July.
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    Cited by:

    1. Carlino, Gerald A. & DeFina, Robert H. & Sill, Keith, 2001. "Sectoral Shocks and Metropolitan Employment Growth," Journal of Urban Economics, Elsevier, vol. 50(3), pages 396-417, November.
    2. Alexander Chudik & Janet Koech & Mark Wynne, 2021. "The Heterogeneous Effects of Global and National Business Cycles on Employment in US States and Metropolitan Areas," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(2), pages 495-517, April.
    3. Gerald A. Carlino, 2003. "A confluence of events? explaining fluctuations in local employment," Business Review, Federal Reserve Bank of Philadelphia, issue Q1, pages 6-12.
    4. Campolieti, Michele & Gefang, Deborah & Koop, Gary, 2014. "A new look at variation in employment growth in Canada: The role of industry, provincial, national and external factors," Journal of Economic Dynamics and Control, Elsevier, vol. 41(C), pages 257-275.
    5. Michele Campolieti & Deborah Gefang & Gary Koop, 2013. "A new look at variation in employment growth in Canada," Working Papers 26145565, Lancaster University Management School, Economics Department.

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