Showing results 1 to 2 of approximately 2.(refine search)
The Role of News about TFP in U.S. Recessions and Booms
We develop a general equilibrium model to study the historical contribution of TFP news to the U.S. business cycle. Hiring frictions provide incentives for firms to start hiring ahead of an anticipated improvement in technology. For plausibly calibrated hiring costs, employment gradually rises in response to positive TFP news shocks even under standard preferences. TFP news shocks are identified mainly by current and expected unemployment rates since periods in which average unemployment is relatively high (low) are also periods in which average TFP growth is slow (fast). We work out the ...
How Does Immigration Fit into the Future of the U.S. Labor Market?
U.S. GDP growth is anticipated to remain sluggish over the next decade, and slow labor force growth is a key underlying reason. Admitting more immigrants is one way U.S. policymakers can bolster growth in the workforce and the economy. A larger role for immigrant workers also can help mitigate other symptoms of the economy’s long-run malaise, such as low productivity growth, declining domestic geographic mobility, and falling entrepreneurship, as well as help address the looming mismatch between the skills U.S. employers want and the skills U.S. workers have. While some might argue that ...