Showing 1 - 10 of 515
We extend the canonical income process with persistent and transitory risk to shock distributions with left-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household data from the United States. We find countercyclical...
Persistent link: https://www.econbiz.de/10012215285
Persistent link: https://www.econbiz.de/10013428556
We study the welfare performance of various simple monetary policy rules under bounded rationality (BR) along the lines of Gabaix (2020) in a New Keynesian model with sticky wages and an effective lower bound (ELB) on interest rates. Policy strategies with a strong history dependence lose their...
Persistent link: https://www.econbiz.de/10014320809
We present a new and simple empirical methodology to identify relative wage rigidity dynamics. The methodology is … relative wage and unemployment differentials for various labour market defining characteristics. A simultaneous increase in the … relative wage and the unemployment likelihood is defined as a relative wage rigidity dynamic for a labour market characteristic …
Persistent link: https://www.econbiz.de/10013428349
reallocate mostly to low capital-intensive firms, experiencing persistent wage losses. …
Persistent link: https://www.econbiz.de/10014440036
2000s, while the employer size wage premium followed the opposite trajectory. In this paper, we show that these two … developments are interrelated. More precisely, our results suggest that variations in the employer size wage premiums induced …-of-variety preferences for employers. Both empirics and theory reveal that higher size wage premiums decrease average establishment size by …
Persistent link: https://www.econbiz.de/10014501125
We develop a theoretical model with labor market frictions, incomplete financial markets and with households which have two members. Households face unemployment risks but their members adjust their labor supplies to insure against unemployment. We use the model to explain the cyclical...
Persistent link: https://www.econbiz.de/10011312576
Persistent link: https://www.econbiz.de/10000967666
Persistent link: https://www.econbiz.de/10013428502
This paper studies the impact of downward wage rigidity on wage and employment dynamics after the outbreak of major … recessions in Spain. Downward wage rigidity stems from collective agreements, which set province-sector-skill specific minimum … wage floors for all workers. By exploiting variation in the renewal of collective contracts, we find that agreements signed …
Persistent link: https://www.econbiz.de/10014566234