TY - JOUR
T1 - Working hard in the wrong place
T2 - A mismatch-based explanation to the UK productivity puzzle
AU - Patterson, Christina
AU - Şahin, Ayşegül
AU - Topa, Giorgio
AU - Violante, Giovanni L.
N1 - Publisher Copyright:
© 2016.
PY - 2016/5/1
Y1 - 2016/5/1
N2 - The UK experienced an unusually prolonged stagnation in labor productivity in the aftermath of the Great Recession. This paper analyzes the role of sectoral labor misallocation in accounting for this "productivity puzzle". If jobseekers disproportionately search for jobs in sectors where productivity is relatively low, hires are concentrated in the wrong sectors, and the post-recession recovery in aggregate productivity can be slow. Our calculations suggest that, quantified at the level of three-digit occupations, this mechanism can explain up to two thirds of the deviations from trend-growth in UK labor productivity since 2007.
AB - The UK experienced an unusually prolonged stagnation in labor productivity in the aftermath of the Great Recession. This paper analyzes the role of sectoral labor misallocation in accounting for this "productivity puzzle". If jobseekers disproportionately search for jobs in sectors where productivity is relatively low, hires are concentrated in the wrong sectors, and the post-recession recovery in aggregate productivity can be slow. Our calculations suggest that, quantified at the level of three-digit occupations, this mechanism can explain up to two thirds of the deviations from trend-growth in UK labor productivity since 2007.
KW - Business cycles
KW - Mismatch
KW - Productivity
UR - http://www.scopus.com/inward/record.url?scp=84958576412&partnerID=8YFLogxK
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U2 - 10.1016/j.euroecorev.2015.10.013
DO - 10.1016/j.euroecorev.2015.10.013
M3 - Article
AN - SCOPUS:84958576412
SN - 0014-2921
VL - 84
SP - 42
EP - 56
JO - European Economic Review
JF - European Economic Review
ER -