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The cyclical behavior of unemployment and wages under information frictions
Morales-Jimenez, Camilo - 2017
I propose a new mechanism for sluggish wages based on workers' noisy information about the state of the economy. Wages do not respond immediately to a positive aggregate shock because workers do not (yet) have enough information to demand higher wages. This increases firms' incentives to post...
Persistent link: https://www.econbiz.de/10011709249
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The Nature of Countercyclical Income Risk
Guvenen, Fatih - 2015
This paper studies the nature of business cycle variation in individual earnings risk using a dataset from the U.S. Social Security Administration, which contains (uncapped) earnings histories for millions of anonymous individuals. The base sample is a nationally representative panel containing...
Persistent link: https://www.econbiz.de/10013035613
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Wage and Employment Cyclicalities at the Establishment Level
Merkl, Christian; Stueber, Heiko - 2021
We document substantial cross-sectional heterogeneity of German establishments’ real wage cyclicality over the business … wages. We estimate a negative connection between establishments’ wage cyclicality and their employment cyclicality, thereby …
Persistent link: https://www.econbiz.de/10013212779
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Hysteresis Via Endogenous Rigidity in Wages and Participation
Doniger, Cynthia; Lopez-Salido, David - 2020
complementarity in firms' wage setting and workers' job search strategies. Strategic complementarity results in a continuum of … possible equilibria with higher-wage equilibria welfare dominating lower-wage equilibria. Assuming that no economic agent …
Persistent link: https://www.econbiz.de/10014121829
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The nature of household labor income risk
Pruitt, Seth; Turner, Nicholas - 2018
What is the nature of labor income risk facing households? We answer this question using detailed administrative data on household earnings from the U.S. Internal Revenue Service. By analyzing total household labor earnings as well as each member's earnings, we offer several new findings. One,...
Persistent link: https://www.econbiz.de/10011932201
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What Drives Movements in the Unemployment Rate? A Decomposition of the Beveridge Curve
Barnichon, Regis - 2011
This paper presents a framework to interpret movements in the Beveridge curve and analyze unemployment fluctuations. We decompose the unemployment rate into three main components: (1) a component driven by changes in labor demand – movements along the Beveridge curve and shifts in the...
Persistent link: https://www.econbiz.de/10013122077
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Sectoral Okun's Law and Cross-Country Cyclical Differences
Goto, Eiji - 2020
We estimate Okun's law, the negative relationship between output and the unemployment rate, at the sector level for the US, the UK, Japan, and Switzerland to test several hypotheses that may explain why the aggregate Okun's coeffcients are different across countries. Specifically, we show that...
Persistent link: https://www.econbiz.de/10012841145
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Which Output Gap Estimates are Stable in Real Time and Why?
Barbarino, Alessandro; Berge, Travis J.; Chen, Han; … - 2021
Output gaps that are estimated in real time can differ substantially from those estimated after the fact. We aim to understand the real-time instability of output gap estimates by comparing a suite of reduced-form models. We propose a new statistical decomposition and find that including a...
Persistent link: https://www.econbiz.de/10014088284
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Short-Time Work Subsidies in a Matching Model
Meier, Volker - 2019
labor demand. Tightening eligibility to short-time work benefits tends to reduce the wage while the impact on unemployment …
Persistent link: https://www.econbiz.de/10012892292
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Do greasy wheels curb inequality?
Doniger, Cynthia L. - 2019
I document a disparity in the cyclicality of the allocative wage-the labor costs considered when deciding to form or … more exhibit an allocative wage that is highly pro-cyclical while high school dropouts exhibit no statistically discernible … wage margin. An important takeaway is that conventional monetary policy easing reduces employment inequality but increases …
Persistent link: https://www.econbiz.de/10012018447