On This PageVol. 21, No. 3

Measuring labor market turbulence
Last Updated: 04/16/97
Increased economic turbulence leads to increases in the full unemployment. This article proposes a measure of economic turbulence using data on employment share across broad industry categories. The effect of the business cycle on employment shares has been removed to allow for a measure of turbulence that reflects only idiosyncratic shocks to the various sectors.