Martin Baily and Robert Lawrence (2004) present a much more thorough analysis of this issue and come to a similar conclusion.4  To investigate further the relationship between restructuring and labor productivity, we compared the performance of industry employment to the performance of industry productivity for the period from 2000 to 2002 (chart 5).
The fact that some industries experienced large declines in employment share and well-above-average gains in productivity suggests that adverse demand shocks may not be the only source of restructuring.