Monetary policy, labor force participation, and wage rigidity

IF 1.9 3区 经济学 Q2 ECONOMICS
Yuto Iwasaki , Hiroyuki Kubota , Ichiro Muto , Mototsugu Shintani
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引用次数: 0

Abstract

To understand the role of monetary policy in determining the labor force participation rate, we present empirical evidence for Japan and the US. The data suggests that labor force participation declines in Japan but temporarily increases in the US in response to a monetary tightening. To inspect the mechanism, we develop and estimate a New Keynesian model of endogenous labor force participation decisions incorporating wage rigidity. We find that the opposite response of labor force participation can be attributed to a difference in the degree of wage rigidity. Counterfactual analysis based on the estimated models shows that the large-scale monetary easing in recent years helped boost the labor force participation rate in Japan, while its effect was almost neutral in the US.
货币政策、劳动力参与率和工资刚性
为了理解货币政策在决定劳动力参与率方面的作用,我们提供了日本和美国的经验证据。数据显示,由于货币紧缩,日本的劳动力参与率下降,但美国的劳动力参与率暂时上升。为了检验这一机制,我们开发并估计了一个包含工资刚性的内生劳动力参与决策的新凯恩斯模型。我们发现劳动力参与的相反反应可以归因于工资刚性程度的差异。基于估计模型的反事实分析表明,近年来日本的大规模货币宽松有助于提高劳动力参与率,而美国的效果几乎是中性的。
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来源期刊
CiteScore
3.10
自引率
10.50%
发文量
199
期刊介绍: The journal provides an outlet for publication of research concerning all theoretical and empirical aspects of economic dynamics and control as well as the development and use of computational methods in economics and finance. Contributions regarding computational methods may include, but are not restricted to, artificial intelligence, databases, decision support systems, genetic algorithms, modelling languages, neural networks, numerical algorithms for optimization, control and equilibria, parallel computing and qualitative reasoning.
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