presentation - VirtualRDC @ Cornell - Cornell University
presentation - VirtualRDC @ Cornell - Cornell University
presentation - VirtualRDC @ Cornell - Cornell University
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Distorting flows<br />
■ Distorted net job flow (JF ) is computed at the aggregate (k =<br />
geography, industry, or combination of the two for the<br />
appropriate age and sex categories) level as the product of<br />
the aggregated, undistorted rate of growth and the<br />
aggregated distorted employment:<br />
JF ∗ kt = G kt × Ē∗ kt = JF kt × Ē∗ kt<br />
Ē kt<br />
.<br />
■ The formulas for distorting gross job creation (JC) and job<br />
destruction (JD) are similar.<br />
■ Same logic is used to distort wage changes for subgroups<br />
August 10, 2005 - p. 13/31