The Interaction Between Credit and Labor Market Frictions

• 成果类型: Article; Early Access
• 署名作者: Moiseeva, Yulia
• 署名单位: University of St Andrews
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.70071
• 发表日期: 2026
• 关键词: cyclical behavior; equilibrium unemployment; borrowing constraints; VACANCIES; COSTS

摘要

I study a novel two-way feedback between credit and labor market frictions. Running from credit to labor markets, amplitude in capital demand caused by collateral constraints spills over onto labor demand due to the complementarity of capital and labor; and, furthermore, credit frictions raise effective financial hiring costs, prompting firms to delay hiring in recessions. Running back from labor to credit markets, search frictions imply that wages move less than one-to-one with productivity; this induces greater volatility of net worth, via the wage bill, which then spills over onto capital demand. Together, these considerably amplify labor and capital market dynamics.