Of clerks & cleaners: the heterogeneous impact of monetary policy on the US labor market
Gregor Zens (),
Maximilian Böck and
Thomas O. Zörner ()
Authors registered in the RePEc Author Service: Thomas O. Zoerner
No 297, Department of Economics Working Paper Series from WU Vienna University of Economics and Business
In this paper we estimate the effect of monetary policy on the US labor market using disaggregated data based on large scale micro surveys. By employing a Bayesian factor-augmented vector autoregression framework, we investigate the impact of an unanticipated interest rate change on the unemployment rate in 32 occupation groups. Our results on the aggregate level are in line with the literature and point towards a strong influence of monetary policy on economic activity, overall unemployment and investment. A closer look on the disaggregated level reveals heterogeneous impacts across occupation groups. This heterogeneity can partially be explained by the amount of routine tasks and the degree of offshorability of an particular occupation group. These results suggest that workers who are highly vulnerable to medium-term and long-term developments such as automatization and offshoring are also hit disproportionately hard by short-term economic fluctuations.
Keywords: Monetary Policy; Unemployment; FAVAR; Occupation-level; Bayesian Analysis (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-mon
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://epub.wu.ac.at/7317/ original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wiw:wus005:7317
Access Statistics for this paper
More papers in Department of Economics Working Paper Series from WU Vienna University of Economics and Business Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by WU Library ().