Mark Bils, Marianna Kudlyak, Paulo de Carvalho Lins
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引用次数: 3
Abstract
We estimate cyclicality in labor’s user cost allowing for cyclical fluctuations in the quality of worker-firm matches and wages that are smoothed within employment matches. To do so, we exploit a match’s long-run wage to control for its quality. Using 1980–2019 National Longitudinal Survey of Youth data, we identify three channels by which recessions affect user cost: they lower the new-hire wage and wages going forward in the match, but they also result in higher subsequent separations. We find that labor’s user cost is highly procyclical, increasing by more than 4% for a 1 percentage point decline in unemployment.
期刊介绍：
Since 1983, the Journal of Labor Economics has presented international research that examines issues affecting the economy as well as social and private behavior. The Journal publishes both theoretical and applied research results relating to the U.S. and international data. And its contributors investigate various aspects of labor economics, including supply and demand of labor services, personnel economics, distribution of income, unions and collective bargaining, applied and policy issues in labor economics, and labor markets and demographics.
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