We propose a new fiscal transmission channel based on countercyclical monopsony power in the labor market. We develop a Two-Agent New Keynesian model incorporating a time-varying degree of monopsony power, with workers valuing various job aspects and firms having wage-setting power, inversely...

Childhood is a critical period for development of mental health: episodes of mental illness during this time often recur in adulthood but early intervention can be highly effective at reducing this persistence. Understanding determinants of child mental health is therefore key for the design of...

Disability benefits provide social insurance against the risk of losing working capacity, as well as an important source of income for individuals with disabilities. They are also costly and tend to reduce labor supply. Although spending can be contained by careful targeting, correcting past...