@TechReport{iza:izadps:dp18068,
            	author={Bagger, Jesper and Fontaine, Francois and Galenianos, Manolis and Trapeznikova, Ija},
            	title={Output Fluctuations and Firm Recruitment Effort},
            	year={2025},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={18068},
            	url={https://www.iza.org/index.php/publications/dp18068},
	abstract={This paper examines the relationship between output fluctuations and firms’ recruitment efforts using Danish data that link online job ads with high-frequency firm-level revenue and value-added. While overall output growth is weakly correlated with advertisement rates, decomposing output into permanent and transitory components reveals a strong link between persistent shocks and recruitment effort. A one standard deviation permanent shock raises advertisement rates by 10-16% of a standard deviation, whereas transitory shocks show no significant effect. These results highlight the importance of shock persistence in labor demand and offer empirical support for dynamic search-and-matching models of the labor market.},
	keywords={value-added growth;revenue growth;output growth;online job advertisements;vacancies;permanent and transitory shocks},
            }