Technical change, sectoral dislocation and barriers to labor mobility: Factors behind the great recession

Valentini, Enzo; Arlotti, Marco; Compagnucci, Fabiano; Gentili, Andrea; Muratore, Fabrizio; Gallegati, Mauro

doi:10.1016/j.jedc.2017.05.005

Cited by 7 publications

(4 citation statements)

References 46 publications

(40 reference statements)

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“…Our work is, in general terms, consistent with the work by Valentini et al (2017) who argue that the US economy has managed to overcome the recent crisis due to its increased labour mobility across the various sectors. In other words, the view that the US market is resilient to structural changes is re-confirmed.…”

Section: Discussionsupporting

confidence: 91%

“…In other words, the view that the US market is resilient to structural changes is re-confirmed. See, among others, DelliGatti et al (2012) and Valentini et al (2017). This finding confirms previous studies showing that regional and sectoral job flows are an economic blessing when labour mobility is between skill-related sectors characterized by cognitive proximity.…”

Section: Discussionsupporting

confidence: 86%

“…Our finding regarding the dominant sector in the US economy partly contradicts the findings of Pesaran and Yang (2016) who argue that the wholesale sector is the dominant one in the United States using data for the time period 1972–1995. Nonetheless, due to the fact that: (1) the two periods of investigation are not identical; and (2) technology increased significantly over the last decades, our finding is fully compatible with the shift of the US economy towards knowledge intensive sectors over the last years (Valentini et al , 2017).…”

Section: Discussionsupporting

confidence: 55%

“…The dominance of sector 7 could be attributed to the fact the US economy reallocated toward knowledge-intensive service sectors, in an attempt to a faster recovery from the crisis of 2007 (Valentini et al , 2017). Of course, the dominance of sector 7 is also validated by the fact that this sector, based on the respective GIRFs, is not statistically significantly affected by unexpected/unanticipated unit shocks in the rest of the sectors, while a shock in the dominant sector seems to have a statistically significant effect on the majority of the US sectors.…”

Section: Discussionmentioning

confidence: 99%

See 3 more Smart Citations

Modelling sectoral spillovers in the USA (1992–2015)

Michaelides

Papageorgiou

Daglis

2020

JES

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PurposeThis research paper uses a novel methodological approach to investigate the spillover effects among the key sectors of the US economy.Design/methodology/approachThe paper links the US sectors via a node theoretic scheme based on a general equilibrium framework, whereas it estimates the general equilibrium equation as a Global Vector Autoregressive process, taking into consideration the potential existence of dominant units.FindingsBased on our findings, the dominant sector in the US economy, for the period 1992–2015, is the sector of information technology, finance and communications, a fact that gives credence to the view that the US economy is a service-driven economy. In addition, the US economy seems to benefit by the increased labour mobility across knowledge-intensive sectors, thus avoiding the ‘employment trap’ which in turn enabled the US economy to overcome the financial crisis of 2007.Originality/valueFirstly, the paper models by means of a network approach which is based on a general equilibrium framework, the linkages between the US sectors while treating the sector of information, technology, communications and finance as dominant, as dictated by its degree of centrality in the network structure. Secondly, the paper offers a robustness analysis regarding both the existence and the identification of dominant sectors (nodes) in the US economy. Thirdly, the paper studies a wide period, namely 1992–2015, fully capturing the recent global recession, while acknowledging the impact of the global crisis through the introduction of the relevant exogenous dummy variables; Lastly and most importantly, it is the first study to apply the GVAR approach in a network general equilibrium framework at the sectoral level.

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Section: Discussionsupporting

confidence: 91%

Section: Discussionsupporting

confidence: 86%