TY  - RPRT
        AU  - Bagger, Jesper
AU  - Fontaine, Francois
AU  - Galenianos, Manolis
AU  - Trapeznikova, Ija
        TI  - Output Fluctuations and Firm Recruitment Effort
        PY  - 2025/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18068
        UR  - https://www.iza.org/index.php/publications/dp18068
        AB  - 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.
        KW  - value-added growth
KW  - revenue growth
KW  - output growth
KW  - online job advertisements
KW  - vacancies
KW  - permanent and transitory shocks
        ER  -