%0 Report
        %A Bagger, Jesper
%A Fontaine, Francois
%A Galenianos, Manolis
%A Trapeznikova, Ija
        %T Output Fluctuations and Firm Recruitment Effort
        %D 2025
        %8 2025 Aug
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 18068
        %U https://www.iza.org/publications/dp18068
        %X 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.
        %K value-added growth
%K revenue growth
%K output growth
%K online job advertisements
%K vacancies
%K permanent and transitory shocks