Technology shocks and labor market dynamics: Some evidence and theory

• 成果类型: Article
• 署名作者: Liu, Zheng; Phaneuf, Louis
• 署名单位: Emory University; University of Quebec; University of Quebec Montreal
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2007.06.015
• 发表日期: 2007
• 页码: 2534-2553
• 关键词: technology shock; labor market; nominal rigidities; business cycle

摘要

A positive technology shock may lead to a rise or a fall in per capita hours, depending on how hours enter the empirical VAR model. We provide evidence that, independent of how hours enter the VAR, a positive technology shock leads to a weak response in nominal wage inflation, a modest decline in price inflation, and a modest rise in the real wage in the short-run and a permanent rise in the long-run. We then examine the ability of several competing theories to account for this VAR evidence. Our preferred model features sticky prices, sticky nominal wages, and habit formation. The same model also does well in accounting for the labor market evidence in the post-Volcker period. (c) 2007 Elsevier B.V. All rights reserved.