Abstract
This paper studies the sources of fluctuations in Canadian employment growth disaggregated by province and, within each province, by one-digit industry. Using an error components decomposition, industry-specific shocks are found to be relatively more important in explaining fluctuations in employment growth. Aggregate and province-specific shocks also play an important role, with the latter contributing about 30 percent of the explained variance in employment growth. Using a set of additional identifying assumptions, the decomposition technique is then extended to construct time series on the underlying shocks and to examine their properties.
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The views expressed in this paper are those of the authors and do not necessarily reflect the views of the International Monetary Fund. The authors are grateful to an anonymous referee for helpful comments.
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Prasad, E., Thomas, A. A disaggregated analysis of employment growth fluctuations in Canada. Atlantic Economic Journal 26, 274–287 (1998). https://doi.org/10.1007/BF02299345
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DOI: https://doi.org/10.1007/BF02299345