Search Results

SORT BY: PREVIOUS / NEXT
Jel Classification:J08 

Working Paper
Labor Market Institutions and the Effects of Financial Openness

We propose a new channel to explain why developing countries may fail to benefit from financial globalization, based on labor market institutions. In our model, financial openness in a developing country with a rigid labor market leads to capital outflow, and both employment and output fall. In contrast, financial openness in a developing country with a flexible labor market benefits the country. Our model suggests that enhancing labor market flexibility is a complementary reform for developing countries opening capital accounts.
Research Working Paper , Paper RWP 19-11

Report
The Macroeconomic Dynamics of Labor Market Policies

We develop a dynamic macroeconomic framework with worker heterogeneity, putty-clay adjustment frictions, and firm monopsony power to study the distributional impact of labor market policies over time. Our framework reconciles the well-known tension between low short-run and high long-run elasticities of substitution across inputs of production, especially among workers with different skills within a same education group. We use this framework to evaluate the effects of redistributive policies such as the minimum wage and the Earned Income Tax Credit. We argue that since these policies ...
Staff Report , Paper 668

Discussion Paper
Financing Workforce Development in a Devolutionary Era

Workforce development financing has changed significantly over the last 25 years. In 2008, federal funding for the traditional workforce development system was 83 percent lower in real terms than it had been in 1980. As the federal system plays a smaller role in workforce development financing, the job training landscape better represents a “marketplace” where students and job seekers use federal training vouchers and grant and student loan money from various sources, primarily the Higher Education Act’s Pell Grant and Federal Student Loan programs. Additionally, increasing volatility ...
FRB Atlanta Community and Economic Development Discussion Paper , Paper 2016-02

Discussion Paper
Restructuring the Eligibility Policies of the Child Care and Development Fund to Address Benefit Cliffs and Affordability: Florida as a Case Study

This paper explores how the current eligibility policies of the federal Child Care and Development Fund (CCDF) create benefits cliffs that act as barriers to economic self-sufficiency. By examining Florida data and policies, the authors demonstrate how the program’s existing co-payment schedule affects the same hypothetical family living in two contrasting Florida counties: one with state median living costs and one with high living costs. The authors find that the CCDF income eligibility exit threshold is too low, particularly in high-cost counties. That occurs because the exit threshold ...
FRB Atlanta Community and Economic Development Discussion Paper , Paper 2021-01

Working Paper
Health versus Wealth: On the Distributional Effects of Controlling a Pandemic

To slow the spread of COVID-19, many countries are shutting down nonessential sectors of the economy. Older individuals have the most to gain from slowing virus diffusion. Younger workers in sectors that are shuttered have the most to lose. In this paper, we build a model in which economic activity and disease progression are jointly determined. Individuals differ by age (young and retired), by sector (basic and luxury), and by health status. Disease transmission occurs in the workplace, in consumption activities, at home, and in hospitals. We study the optimal economic mitigation policy of a ...
Research Working Paper , Paper RWP 20-03

Working Paper
The Unintended Consequences of Employer Credit Check Bans on Labor and Credit Markets

Since the Great Recession, 11 states have restricted employers' access to the credit reports of job applicants. We document that county-level vacancies decline between 9.5 percent and 12.4 percent after states enact these laws. Vacancies decline significantly in affected occupations but remain constant in those that are exempt, and the decline is larger in counties with many subprime residents. Furthermore, subprime borrowers fall behind on more debt payments and reduce credit inquiries postban. The evidence suggests that, counter to their intent, employer credit check bans disrupt labor and ...
Working Papers , Paper 16-25R2

Working Paper
Human Capital Dynamics and the U.S. Labor Market

The high U.S. unemployment rate after the Great Recession is usually considered to be a result of changes in factors influencing either the demand side or the supply side of the labor market. However, no matter what factors have caused the changes in the unemployment rate, these factors should have influenced workers' and firms' decisions. Therefore, it is important to take into account workers' endogenous responses to changes in various factors when seeking to understand how these factors affect the unemployment rate. To address this issue, we estimate a Mortensen-Pissarides style of ...
FRB Atlanta Working Paper , Paper 2014-2

Working Paper
Labor Market Institutions and the Effects of Financial Openness

We propose a new channel to explain why developing countries may fail to benefit from financial globalization, based on labor market institutions. In our model, financial openness in a developing country with a rigid labor market leads to capital outflow, and both employment and output fall. In contrast, financial openness in a developing country with a flexible labor market benefits the country. Our model suggests that enhancing labor market flexibility is a complementary reform for developing countries opening capital accounts.
Research Working Paper , Paper RWP 19-11

Working Paper
Committing to Grow: Privatizations and Firm Dynamics in East Germany

This paper investigates a unique policy designed to maintain employment during the privatization of East German firms after the fall of the Iron Curtain. The policy required new owners of the firms to commit to employment targets, with penalties for non-compliance. Using a dynamic model, we highlight three channels through which employment targets impact firms: distorted employment decisions, increased productivity, and higher exit rates. Our empirical analysis, using a novel dataset and instrumental variable approach, confirms these findings. We estimate a 22% points higher annual employment ...
International Finance Discussion Papers , Paper 1382

Working Paper
The Unintended Consequences of Employer Credit Check Bans on Labor and Credit Markets

Since the Great Recession, 11 states have restricted employers? access to the credit reports of job applicants. We document that county-level vacancies decline between 9.5 percent and 12.4 percent after states enact these laws. Vacancies decline significantly in affected occupations but remain constant in those that are exempt, and the decline is larger in counties with many subprime residents. Furthermore, subprime borrowers fall behind on more debt payments and reduce credit inquiries postban. The evidence suggests that, counter to their intent, employer credit check bans disrupt labor and ...
Working Papers (Old Series) , Paper 1625

FILTER BY year

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

J23 6 items

J24 6 items

E24 5 items

I38 5 items

D22 4 items

show more (30)

FILTER BY Keywords

human capital 6 items

workforce development 6 items

provision and effects of welfare programs 5 items

skills 5 items

Industrial policy, Privatizations 4 items

Productivity 4 items

show more (56)

PREVIOUS / NEXT