Labor Market Effects of Monetary Policy Across Workers and Firms

Andreas Gulyas, Matthias Meier and Mykola Ryzhenkov

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: This paper uses Austrian social security records to analyze the effects of ECB monetary policy on the labor market. Our focus is on the role of worker and firm wage components, defined by an Abowd et al. (1999) wage regression. Our findings show that monetary tightening causes the largest employment losses for low-paid workers who are employed in high-paying firms before the tightening. Monetary tightening further causes a reallocation of workers to lower-paying firms. In particular low-paid workers who were originally employed by low-paying firms are prone to falling down the firm wage ladder.

Keywords: Monetary policy; worker reallocation; heterogeneity; AKM (search for similar items in EconPapers)
JEL-codes: E24 E32 E52 (search for similar items in EconPapers)
Pages: 30
Date: 2023-03
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac and nep-mon
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Citations: View citations in EconPapers (3)

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Journal Article: Labor market effects of monetary policy across workers and firms (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2023_407

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