Journal article
Anticipated productivity and the labor market
QUANTITATIVE ECONOMICS, v 14(3), p897
Jul 2023
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
We identify the main shock driving fluctuations in long-horizon productivity expectations, consistent with theories of TFP news. The identified shock induces strong comovement patterns in output, consumption, investment, employment, and stock prices even though TFP does not change significantly for more than 2 years. A labor search model in which wages are determined by a cash-flow sharing rule, rather than the present value of match surplus, matches the observed responses to the news shock. The model also matches the empirical patterns of vacancies, labor force participation, hours, and job-finding rates. The proposed wage rule is consistent with empirical responses of wages to both anticipated and unanticipated productivity changes.
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Details
- Title
- Anticipated productivity and the labor market
- Publication Details
- QUANTITATIVE ECONOMICS, v 14(3), p897
- Publisher
- WILEY; HOBOKEN
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Drexel University
- Web of Science ID
- WOS:001037540400004
- Scopus ID
- 2-s2.0-85166015628
- Other Identifier
- 991021861207704721
UN Sustainable Development Goals (SDGs)
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Economics