A Dynamic Framework for Identification and Estimation of Nonseparable Production Functions

by Justin Doty (2021)

Appendix D.2: Labor Dynamics

Figure 39: Impulse Response of Adjustment Shocks to Labor

This plot reports the difference in labor demand between firms hit with low, medium-low, medium-high and high labor shocks and medium labor shocks at different levels labor demand. The first row corresponds to firms hit by low labor shocks at year 2. From left to right, these correspond to firms with low, medium, and high levels of labor demand. The second row corresponds to firms hit by medium-low labor shocks at year 2. From left to right, these correspond to firms with low, medium, and high levels of labor demand. The third row corresponds to firms hit by medium-high labor shocks at year 2. From left to right, these correspond to firms with low, medium, and high levels of labor demand. The last row corresponds to firms hit by high labor shocks at year 2. From left to right, these correspond to firms with low, medium, and high levels of labor demand.