SEMINAR SERIES
Macroeconomics Seminar (Joint with Macroeconomics seminar, KIER)
Kazuhiro Teramoto（Graduate School of Economics, Hitotsubashi University）
- Date&Time:
- 2024.3.28 (Thu) 16:00-17:30
- Venue:
- Room N101/102 on 1F, Kyoto Institute of Economic Research, North Bldg., Yoshida Campus, Kyoto University
- Language:
- Japanese
- Contact:
- Kazuhiro Yuki
(Title)
"Unequal Wage Cyclicality: Evidence, Theory, and Implications for Labor Market Volatility"
Abstract: During expansions, wage increases disproportionately bene t higher-paid workers, while the wages of middle- and lower-paid workers stagnate. This study provides evidence of the unequal wage cyclicality and develops a search-and-matching model to explain why lower-wage jobs exhibit weaker wage cyclicality. It features job-ladder and vacancy-chain e ects resulting from on-the-job search and replacement hiring. As expansion leads to increased opportunities to replace poorly-matched employees with better-matched candidates, the value of employers' outside option increases, which in turn suppresses wage increases. These features increase cyclical uctuations in labor market ows. The calibrated model explains three-fourths of the observed unemployment volatility.