Mykhailo Matvieiev (AMSE)

will give a presentation on

 "Job uncertainty, wage growth, and cyclical reallocation".

Abstract

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This paper studies the role of the frictional labor market in the transmission of aggregate shocks in an economy with on-job search. To this end, I incorporate the dynamic job ladder in a Heterogeneous-Agent New Keynesian model with Search and Matching frictions. I show that the job ladder impacts the earnings risk wedge over the business cycle through the change in job-to-job transition rates, as well as through the change in relative wages. Both channels produce quantitatively significant amplification of the aggregate shocks."

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