Shift in Productivity Behavior Impacts Output and Unemployment Dynamics
The article shows that how productivity and unemployment move together during economic ups and downs has changed over time and across countries. Productivity used to go up when the economy was doing well, but now it goes down. During recessions, productivity is more likely to go down. The researchers used a theory to explain these changes and found that in the United States, how much companies hold onto workers during tough times affects productivity. These findings help us understand how businesses and households adjust during economic cycles.