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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

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