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Revisiting the odd behavior of the Beveridge curve as unemployment stays low
Cheremukhin, Anton A. (2024-03-05)
At first glance, it seems unlikely that the unemployment rate would remain stable if the number of job vacancies decreased. However, such a scenario played out recently as the number of firms seeking to fill positions by poaching employees from other firms increased, while the ranks of the unemployed remained relatively stable.
Dallas Fed Economics

Report
Miss-Allocation: The Value of Workplace Gender Composition and Occupational Segregation
Schuh, Rachel (2024-03-01)
I analyze the value workers ascribe to the gender composition of their workplace and the consequences of these valuations for occupational segregation, tipping, and welfare. To elicit these valuations, I survey 9,000 U.S. adults using a hypothetical job choice experiment. This reveals that on average women and men value gender diversity, but these average preferences mask substantial heterogeneity. Older female workers are more likely to value gender homophily. This suggests that gender norms and discrimination, which have declined over time, may help explain some women’s desire for ...
Staff Reports , Paper 1092

Texas firms use AI with little employment impact so far
Cañas, Jesus; Kerr, Emily (2024-06-25)
Learning how businesses use artificial intelligence (AI) helps policymakers understand changing economic conditions, particularly involving employment and productivity.
Dallas Fed Economics

Wage growth still exceeds 3 percent despite slowing in business survey measures
Kerr, Emily; Atkinson, Tyler (2023-08-01)
Fed policymakers working to reduce inflation have closely monitored how fast wages have risen. National estimates put recent 12-month wage inflation at around 4–5 percent, though these measures can lag other indicators of labor market conditions. More timely wage data can be found from the five regional Federal Reserve Banks that run business surveys.
Dallas Fed Economics

Recent growth of professional services jobs favors select Texas counties
Pranger, Ana; Su, Yichen (2023-05-16)
Professional services jobs have grown faster in Texas than in the U.S. since 2020, partly because of business relocations to the state. This expansion has been highly geographically clustered, with 10 of Texas’ 254 counties accounting for more than 92 percent of the statewide growth.
Dallas Fed Economics

Working Paper
The Economic Effects of a Rapid Increase in the Minimum Wage: Evidence from South Korea Experiments
Kim, Sungil; Lee, Hwanoong; Song, Kyungho; Doh, Taeyoung; Kim, Kyoo il (2022-11-07)
South Korea raised the nationwide minimum wage substantially in 2018 and 2019, and the minimum wage rose from 53 percent of the median wage to 63 percent. While the minimum wage has been increasing steadily over decades, the rapid pace in 2018–19 was largely unexpected and driven by a sudden shift in the political environment. We study the economic effects of this minimum wage hike on employment, wages, and labor productivity using South Korean manufacturing firm data. To ensure that sector-specific factors do not drive our main results, we supplement our analysis with data sources covering ...
Research Working Paper , Paper RWP 22-13

Journal Article
Impact of U.S. Labor Productivity Losses from Extreme Heat
Fried, Stephie; Casey, Gregory; Gibson, Matthew (2024-05-28)
Extreme heat decreases labor productivity in sectors like construction, where much work occurs outdoors. Because construction is an important component of investment, lost productivity today will slow how much capital is built up for future use and thus can have long-lasting impacts on overall economic outcomes. Combining estimates of lost labor productivity due to extreme heat with a model of economic growth suggests that, by the year 2200, extreme heat will reduce the U.S. capital stock by 5.4% and annual consumption by 1.8%.
FRBSF Economic Letter , Volume 2024 , Issue 14

Shift to Working from Home Diminished Large Cities' Productivity Premium
Liu, Sitian; Su, Yichen (2022-08-30)
Since the start of the pandemic, the reduced presence of in-office workers has reduced the wage premium attached to large cities and may have diminished the productivity edge of these areas.
Dallas Fed Economics

Discussion Paper
Minimum Wage Impacts along the New York-Pennsylvania Border
Brendan Moore; Karahan, Fatih; Bram, Jason (2019-09-25)
The federal minimum wage, currently set at $7.25 per hour, has remained unchanged for the longest stretch of time since its 1938 inception under the Fair Labor Standards Act. With the real purchasing power of the federal minimum wage eroded by inflation, many states and municipalities have raised their local minimum wages. As of July 2019, fourteen states plus the District of Columbia—home to 35 percent of Americans—have minimum wages above $10 per hour, as do numerous localities scattered across other states. New York is among a handful of states—along with California, Connecticut, ...
Liberty Street Economics , Paper 20190925

Labor market recovery and wage growth unequal across age groups after pandemic
Jayashankar, Aparna; Zhang, Xiaohan (2023-08-02)
The COVID-19 pandemic severely depressed U.S. labor force participation. Although the pandemic has eased, people ages 20–24 and those over 55 have been less likely to return to the workforce.
Dallas Fed Communities

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