Search Results
Journal Article
Jobs: More Slowly Created, More Slowly Destroyed
Reduced dynamism in the labor market is consistent not only with more stable, longer-lived jobs but also longer joblessness and less job switching.
Jobs Hardest Hit by the Pandemic
The COVID-19 pandemic has substantially affected labor markets. Which industries and occupations had the largest employment declines between February and April?
Working Paper
Improving Sovereign Debt Restructurings
The wave of sovereign defaults in the early 1980s and the string of debt crises in subsequent decades have fostered proposals involving policy interventions in sovereign debt restructurings, and the recent global pandemic crisis has further reignited this discussion. A key question about these policy proposals for debt restructurings that has proved hard to handle is how they influence the behavior of creditors and debtors. We address this challenge by evaluating policy proposals in a quantitative sovereign default model that incorporates two essential features: maturity choice and debt ...
Working Paper
The geography of wealth: shocks, mobility, and precautionary savings
The spatial distribution of wealth in the United States is very heterogeneous, with important differences within and across US states. We study the distribution of wealth in a country and how it is shaped by the characteristics earnings across regions, and by the frictions individuals face to move and reallocate across space. For this, we develop a tractable model of consumption, savings, and location choice with many regions, incomplete markets, and heterogeneous agents facing persistent and transitory income shocks. Our analysis focuses on the role of income shocks, precautionary savings, ...
Working Paper
International trade and labor reallocation: misclassification errors, mobility, and switching costs
Over the last few decades, international trade has increased at a rapid pace, altering domestic production and labor demand in different sectors of the economy. A growing literature studies the heterogeneous effects of trade shocks on workers’ employment and on welfare when reallocation decisions are costly. The estimated effects critically depend on data on workers’ reallocation patterns, which is typically plagued with coding errors. In this paper, I study the consequences of misclassification errors for estimates of the labor market effects of international trade and show that ...
Working Paper
International trade and labor reallocation: misclassification errors, mobility, and switching costs
Over the last few decades, international trade has increased at a rapid pace, altering domestic production and labor demand in different sectors of the economy. A growing literature has studied the heterogeneous effects of trade shocks on workers’ industry and occupation employment and on welfare when reallocation decisions are costly. The estimated effects critically depend on data on workers’ reallocation patterns, which is typically plagued with coding errors. In this paper, I study the consequences of misclassification errors for estimates of the labor market effects of international ...
Retirements Surge for Older Workers during COVID-19
Though retirement decisions vary by different age groups, the COVID-19 pandemic increased retirement rates for those age 66 and older.
How Tariffs Are Affecting Prices in 2025
A model suggests that although tariffs have been only partially passed through to consumers, they already have exerted measurable pressure on prices.
Working Paper
The geography of wealth: shocks, mobility, and precautionary savings
The spatial distribution of wealth in the United States is very heterogeneous, with important differences within and across US states. We study the distribution of wealth in a country and how it is shaped by the characteristics earnings across regions, and by the frictions individuals face to move and reallocate across space. For this, we develop a tractable model of consumption, savings, and location choice with many regions, incomplete markets, and heterogeneous agents facing persistent and transitory income shocks. Our analysis focuses on the role of income shocks, precautionary savings, ...
Journal Article
Nominal Wage Adjustments during High Inflation and Tight Labor Markets
The U.S. economic recovery after COVID has been characterized by relatively high inflation and low unemployment. At the same time, average wages increased at a rapid pace during this period, faster than in previous years. Grigsby, Hurst, and Yildirmaz (2021) study nominal wage rigidity in the United States and document that before the pandemic, wage declines were rare and over 35 percent of workers would not receive a wage increase year over year. Given the larger-than-usual aggregate wage growth in the aftermath of the pandemic, we revisit these results and study the frequency and the ...