%0 Report
        %A Bredemeier, Christian
%A Juessen, Falko
%A Winkler, Roland
        %T Fiscal Policy and Occupational Employment Dynamics
        %D 2017
        %8 2017 Jan
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 10466
        %U https://www.iza.org/publications/dp10466
        %X We document substantial heterogeneity in occupational employment dynamics in response to government spending shocks. Employment rises most strongly in service, sales, and office ("pink-collar") occupations. By contrast, employment in blue-collar occupations is hardly affected by fiscal stimulus which is striking in light of its strong exposure to the cycle and its long-run decline due to technical change and globalization. We provide evidence that occupation-specific changes in labor demand are key to understand these findings and develop a business-cycle model that explains the heterogeneous occupational employment dynamics as a consequence of differences in the short-run substitutability between labor and capital services across occupations.
        %K fiscal policy
%K composition of employment
%K occupations
%K industries
%K heterogeneity