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A Framework for Understanding Local
Shocks to Local Labor Markets
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21 SMSAs adjustment process aggregate business cycles changes in labor coefficient components correlation Current Population Survey demand and supply demand for labor demand shock dummy variables Eberts effects employ employment determination employment growth equilibrium estimates exogenous f-statistics factors figure firms first-difference goods-producing and service-producing goods-producing sector growth rates households included increase industry job reallocation justment labor force participation labor market adjustment labor supply response manufacturing ment metropolitan areas Metropolitan Statistical Areas Metropolitan Wage Differentials migration national average negative oil prices overshooting percent level percentage change period personal income policies production public capital stock public infrastructure regional wage differentials sample Sector Labor Demand sectoral interactions Service Sector Labor service-producing sector shifts statistically significant supply and demand supply equation supply shock tion total employment two-tailed test unemployment rates unionization variable wage changes wage elasticity wages and employment West North Central workers