Working Paper: NBER ID: w1292
Authors: Ray C. Fair
Abstract: This paper compares the Medoff-Fay estimates of labor hoarding during troughs, which are based on data from manufacturing plants, with aggregate estimates of excess labor on hand.The two sets of estimates seem consistent, which provides a strong argument in favor of the excess labor hypothesis. This is one of the few examples in macroeconomics where a hypothesis has been so strongly confirmed using detailed micro data.
Keywords: excess labor; business cycle; labor hoarding; macroeconomics
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Labor Hoarding (J23) | Excess Labor (J22) |
| Economic Downturns (F44) | Labor Hoarding (J23) |
| Economic Downturns (F44) | Excess Labor (J22) |