Download or read book Essays on Labour Market Effects of Fiscal Policy written by Goher Fatima and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Job Creation Or Destruction written by John T. Addison and published by . This book was released on 1979 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on papers delivered at an IEA seminar held Dec. 1, 1978. Distributor statement from label mounted on title page Includes bibliographical references and index.

Download or read book Essays on Labour Market Frictions and Fiscal Policy written by Meri Obstbaum and published by . This book was released on 2012 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Role and Limits of Government written by Samuel Brittan and published by . This book was released on 1987 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Labor Markets Monetary Policy and Uncertainty written by Neil Ware White (IV) and published by . This book was released on 2018 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the impacts on the labor market of monetary policy and macroeconomic uncertainty. The first chapter examines how monetary policy shocks in the U.S. affect the flows of workers among three labor market categories--employment, unemployment, and non-participation--and assesses each flow's relative importance to changes in labor market "stock'' variables like the unemployment rate. I find that job loss accounts for the largest portion of monetary policy's effect on labor markets. I develop a New Keynesian model that incorporates these channels and show how a central bank can achieve welfare gains from targeting job loss, rather than output, in an otherwise standard Taylor rule. The second chapter examines the role of monetary policy in "job polarization.'' I argue that contractionary monetary policy has accelerated the decline of employment in routine occupations, which largely affected workers with a high-school degree but no college. In part by disproportionately affecting industries with high shares of routine occupations, contractionary monetary policy shocks lead to large and persistent shifts away from routine employment. Expansionary shocks, on the other hand, have little effect on these industries. Indeed, monetary policy's effect on overall employment is concentrated in routine jobs. These results highlight monetary policy's role in generating fluctuations not only in the level of employment, but also the composition of employment across occupations and industries. The third chapter introduces new direct measures of uncertainty derived from the Michigan Survey of Consumers. The series underlying these new measures are more strongly correlated with economic activity than many other series that are the basis for uncertainty proxies. The survey also facilitates comparison with response dispersion or disagreement, a commonly used proxy for uncertainty in the literature. Dispersion measures have low or negative correlation with direct measures of uncertainty and often have causal effects of opposite sign, suggesting that they are poor proxies for uncertainty. For the measures based on series most closely correlated with economic activity, positive uncertainty shocks are mildly expansionary. This result is robust across identification and estimation strategies and is consistent with "growth options'' theories of the effects of uncertainty.

Download or read book Microeconomics Macroeconomics and Economic Policy written by P. Arestis and published by Springer. This book was released on 2011-07-26 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microeconomics, Macroeconomics and Economic Policy are at the core of research and study in economics. The essays in this volume have been specifically commissioned and brought together to celebrate the work of Malcolm Sawyer, who has made substantial contributions in these areas.

Download or read book Neo liberal Economic Policy written by Philip Arestis and published by Edward Elgar Publishing. This book was released on 2004-01-01 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: . . . this is a very good book. It is carefully argued and well presented, incorporating a wealth of information. Andrew Mearman, Economic Issues Over the past two decades there has been a prevailing shift in economic policy in many countries. This reflects the continuing rise of neo-liberalism the doctrine that economic policy should leave it to the market and that governments should retreat from market intervention. This book provides a balanced and comprehensive appraisal of these important policy developments. The authors examine the most notable trends in neo-liberal economic policy such as the withdrawal from the use of fiscal measures and the reliance on monetary policy. They discuss the neo-liberal view that the causes of unemployment lie in the operation of the labour market, in particular its inflexibility. They also assess the increasing inclination towards the liberalisation and deregulation of markets, most notably financial markets. In light of these developments, the authors investigate several specific areas including: an assessment of the theory of credibility financial fragility and the development process a reappraisal of the Rehn Meidner Model for Sweden the economic policy of the Spanish socialist governments the costs of neomonetarism in Brazil macroeconomic policies of the EMU. The contributors expertly illustrate the ways in which neo-liberal policies have been applied and implemented. They also seek to show the shortcomings of the neo-liberal approach and illustrate the different policy models available. As such, this volume will interest and inform academics, economists and policymakers looking for a detailed critique of recent developments in economic policy.

Download or read book Essays on Money Trade and the Labour Market written by Moritz Bernhard Ritter and published by . This book was released on 2010 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays in Macroeconomics. The first essay assesses the impact of offshoring on aggregate productivity and on labour market outcomes by developing a dynamic general equilibrium model in which workers acquire task-specific human capital. The dynamic nature of the model allows for differentiation between short and long run effects. While the welfare effects are unambiguously positive and independent of the skill-content of the offshored and inshored tasks, the distribution of the gains from trade critically depends on the time horizon. Workers with human capital specific to the inshored tasks gain over those performing offshored tasks in the short term. In the long run, the gains from trade are equally distributed among ex-ante identical agents. The model is calibrated to the U.S. economy; welfare gains from increased offshoring are found to be substantial even after taking into account losses in specific human capital for workers in the offshored occupations along the transition path.The second essay integrates the insight that exporting firms are typically more productive and employ higher skilled workers into a directed search model of the labour market. The model generates a skill premium as well as residual wage inequality among identical workers. Trade liberalization will cause a reallocation of workers both within and across industries, which will affect both types of inequality in a way that is consistent with findings from the empirical literature on trade and inequality. A calibrated version of the model can account for much of the effect of the Canada-U.S. Free Trade Agreement on the Canadian labour market.The final essay incorporates a distortionary tax into the microfoundations of money framework and revisits the optimum quantity of money. An optimal policy may consist of both a positive tax rate and a positive nominal interest rate: if the buyer's surplus share is inefficiently small, the intensive margin is distorted and the constrained optimal policy combines a sales tax with a money growth rate above that prescribed by the Friedman rule. Monetary, but not fiscal, policy alters the agent's bargaining position, leaving a special role for a deviation from the Friedman rule.

Download or read book Essays on Money Trade and the Labour Market written by Moritz Bernhard Ritter and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays in Macroeconomics. The first essay assesses the impact of offshoring on aggregate productivity and on labour market outcomes by developing a dynamic general equilibrium model in which workers acquire task-specific human capital. The dynamic nature of the model allows for differentiation between short and long run effects. While the welfare effects are unambiguously positive and independent of the skill-content of the offshored and inshored tasks, the distribution of the gains from trade critically depends on the time horizon. Workers with human capital specific to the inshored tasks gain over those performing offshored tasks in the short term. In the long run, the gains from trade are equally distributed among ex-ante identical agents. The model is calibrated to the U.S. economy; welfare gains from increased offshoring are found to be substantial even after taking into account losses in specific human capital for workers in the offshored occupations along the transition path. The second essay integrates the insight that exporting firms are typically more productive and employ higher skilled workers into a directed search model of the labour market. The model generates a skill premium as well as residual wage inequality among identical workers. Trade liberalization will cause a reallocation of workers both within and across industries, which will affect both types of inequality in a way that is consistent with findings from the empirical literature on trade and inequality. A calibrated version of the model can account for much of the effect of the Canada-U.S. Free Trade Agreement on the Canadian labour market. The final essay incorporates a distortionary tax into the microfoundations of money framework and revisits the optimum quantity of money. An optimal policy may consist of both a positive tax rate and a positive nominal interest rate: if the buyer's surplus share is inefficiently small, the intensive margin is distorted and the constrained optimal policy combines a sales tax with a money growth rate above that prescribed by the Friedman rule. Monetary, but not fiscal, policy alters the agent's bargaining position, leaving a special role for a deviation from the Friedman rule.

Download or read book Essays on Fiscal Policy Monetary Policy and Currency Unions written by Mahama Abdel Samir Sidbéwendé Bandaogo and published by . This book was released on 2016 with total page 107 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation I study how economic activity outside of government control --informality-- impacts policy-making in a small open economy. I also study the impact of labor mobility in a currency union on the welfare of the union. Chapter 1 is concerned with the impact of informality on the Ramsey optimal fiscal and monetary policy. In particular, I ask: how does economic activity outside of government control affect the conduct of fiscal and monetary policy? I study this question in a New Keynesian, small open economy model. The model is assumed to feature informality in both goods and labor markets. A non-traded sector produces a non-taxed informal good. The traded sector produces a formal good and is subject to taxation, but it can hire workers using both formal and informal contracts. I show that the presence of informality decreases the optimal tax rate and increases macroeconomic volatility. Moreover, when the country cannot credibly precommit to the optimal policy, informality significantly increases the incentive to peg the currency. This result can help explain why many sub-Saharan African countries have plans to either expand existing currency unions or to form new ones. In Chapter 1 I also investigate the impact of the informal sector on fiscal policy: the tax rate levied by the government in the formal sector and the amount of public debt. With the steady state of the theoretical model described above, I show that the presence of informality decreases the optimal tax rate and increases the level of public debt. Using a panel data of developing countries, I empirically document the negative relationship between the size of the informal sector on the tax rate and its positive relationship with public debt. Chapter 2 is concerned with how migration within a currency union affects welfare across the union. In particular, I study this question in this paper with a New Keynesian currency union model. The union consists of two countries whose economies are characterized by labor market frictions. One country member has a higher job-finding rate and a lower unemployment rate compared to the other country, hence unemployed agents in the latter have an incentive to relocate to the former. I show that when firms have the ability to hire workers from abroad and when unemployed agents can relocate to a different country, the negative impact of asymmetric shocks is significantly reduced, improving welfare across the union on average.

Download or read book The Effectiveness of Fiscal Policy in Stimulating Economic Activity written by Richard Hemming and published by International Monetary Fund. This book was released on 2002-12 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.

Download or read book Essays in Public Policy and Labour Economics written by Abdullah Selim Öztek and published by . This book was released on 2019 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis comprises three chapters that provide discussions for labour income taxation and labour market effects of immigration and minimum wage. Chapter 1 studies the optimal income taxation with a finite number of types. It is shown that Rawlsian social welfare and maximax social welfare functions constitute upper and lower bounds for the second-best optimal marginal tax schedules. Therefore, any marginal tax schedule with a higher tax rate than Rawlsian bound or with a lower tax rate than maximax bound would be inefficient. Moreover, it is shown that reasonable marginal tax schedules between these two benchmarks could be supported as a second-best tax schedule with appropriate social weights. These results are also valid when bunching is optimal. Additionally, some characterization for the total tax rates at the top and bottom of the income distribution are given. Chapter 2 analyses the labour market effects of the Syrian refugees on Turkish natives. Our results suggest that there are no negative effects on native employment but there is a compositional change in the labour market. On the contrary, we provide evidence for positive effects on formal employment which is confirmed by the administrative data. When we analyse the changes in labour outcomes by gender, results are differentiated in a systematic way. For males, while there is an increase in formal employment, informal employment decreases. Results are the opposite for females. There is a reduction in formal employment but an increase in informal female employment. These results suggest that while refugees are substitutes for females in the formal market, they are complements to formal male workers. Chapter 3 investigates wage and employment effects of the minimum wage in Turkey. Our analysis suggests that while formal wages are increasing with the minimum wage, there is no significant change in informal market wages. For the employment outcomes, we observe a significant increase in informal employment however there is no significant change in formal employment. The increased share of informal labour is mainly due to increased labour force participation. Since females are paid less than males, the wage and employment effects are much stronger for women. Although minimum wage is set for a calendar month, we observe no changes in formal and informal working hours.

Download or read book Essays in Public Economics written by Zachary Liscow and published by . This book was released on 2012 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation seeks to understand the determinants and effects of public policies and to understand how to use these results to improve policy. The first two parts consider government spending during recessions--the effects of the spending and how to spend most effectively. In "Does State Fiscal Relief During Recessions Increase Employment? Evidence from the American Recovery and Reinvestment Act," my co-authors and I measure the employment effects of spending during recessions. The American Recovery and Reinvestment Act (ARRA) of 2009 included $88 billion of aid to state governments administered through the Medicaid reimbursement process. We examine the effect of these transfers on states' employment. Because state fiscal relief outlays are endogenous to a state's economic environment, OLS results are biased downward. We address this problem by using a state's pre-recession Medicaid spending level to instrument for ARRA state fiscal relief. In our preferred specification, a state's receipt of a marginal $100,000 in Medicaid outlays results in an additional 3.8 job-years, 3.2 of which are outside the government, health, and education sectors. In "Labor Market Policy for Inefficient Job Rationing During Recessions," my co-author and I consider how to best design government spending during recessions. We consider a simple static model of labor markets during recessions where the allocation of scarce jobs to workers is resolved inefficiently. In our model, some of the unemployed have high surplus from employment (e.g., those with a mortgage, three children, and a non-working spouse), while some of the employed do not. This inefficient rationing increases the welfare costs of recessions. We propose three solutions: (i) subsidizing non-employment, (ii) taxing employees, and (iii) subsidizing employers. These policies make "space" for those who really need jobs. In "Why Fight Secession? Evidence of Economic Motivations from the American Civil War," I turn to the determinants of government policy. I ask why governments fight secession. This paper is a case study on this question, asking why the North chose to fight the South in the American Civil War. It tests a theoretical prediction that economic motivations were important, using county-level presidential election data. If economic interests like manufacturing wished to keep the Union together, they should have generated votes to do so. That prediction is borne out by the data, and explanations other than Northern economic concerns about Southern secession appear unable to explain the results, suggesting that economic motivations were important to support for fighting the South.

Download or read book Essays in Labor Economics and Public Policy written by Gabriela Liliana Galassi and published by . This book was released on 2018 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis contains three chapters around two related questions: (1) what are the determinants of the decision to work?, and (2) what are the (unintended) effects of policies stimulating labor market participation? The first two chapters tackle the second question in the empirical setting of the Mini-Job reform in Germany, which expanded substantially the in-work benefits, or tax advantages for low-earning workers. The third chapter, dealing with the first question, focuses on the transmission of employment behavior and preferences for work across generations. The first chapter analyzes how firms respond to changes in tax benefits for low-earning workers and how, through equilibrium effects, such policies also affect non-targeted, highearning workers. Combining theoretical and empirical analysis, I document the presence of both job creation and substitution underlying firm responses induced by the Mini-Job Reform. In particular, I nd that firms with a high pre-reform use of low-earning workers increase the demand for workers with better earnings, an important result. The second essay provides an empirical analysis of the effects of the same reform on earnings and employment prospects of targeted workers. The findings question the role of in-work benefits as an antipoverty policy since they do not improve earnings of targeted workers. However, they also show that these benefits provide opportunities for jobless individuals to smoothly transit to better paid employment. Finally, in the third chapter, joint with Lukas Mayr and David Koll, we analyze how employment status and attitudes towards work are related across generations. Using data for the US, we find a significant positive correlation between the employment status of mothers and children, after controlling for productivity and other observable factors. We interpret this finding as evidence of transmission of preferences for work. We show that the correlation is unlikely to be driven by networks, transmission of specific human capital or local labor markets' conditions, and we provide suggestive evidence for a role model channel.

Download or read book Essays on Macroeconomic Policies and Household Heterogeneity written by Gergő Motyovszki and published by . This book was released on 2021 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis is composed of three independent chapters, but all centered around the broader topic of how macroeconomic policies interact with various aspects of household heterogeneity. Monetary Policy and Inequality under Labor Market Frictions and Capital-Skill Complementarity We provide a new channel through which monetary policy has distributional consequences at business cycle frequencies. We show that an unexpected monetary easing increases labor income inequality between high and less-skilled workers. In particular, this effect is prominent in sectors intensive in less-skilled labor, that exhibit high degree of capital-skill complementarity (CSC) and are subject to matching inefficiencies. To rationalize these findings we build a New Keynesian DSGE model with asymmetric search and matching (SAM) frictions across the two types of workers and CSC in the production function. We show that CSC on its own introduces a dynamic demand amplification mechanism: the increase in high-skilled employment after a monetary expansion makes complementary capital more productive, encouraging a further rise in investment demand and creating a multiplier effect. SAM asymmetries magnify this channel. Monetary-Fiscal Interactions and Redistribution in Small Open Economies Ballooning public debts in the wake of the covid-19 pandemic can present monetary-fiscal policies with a dilemma if and when neutral real interest rates rise, which might arrive sooner in emerging markets: policymakers can stabilize debts either by relying on fiscal adjustments (AM-PF) or by tolerating higher inflation (PM-AF). The choice between these policy mixes affects the efficacy of the fiscal expansion already today and can interact with the distributive properties of the stimulus across heterogeneous households. To study this, I build a two agent New Keynesian (TANK) small open economy model with monetary-fiscal interactions. Targeting fiscal transfers more towards high-MPC agents increases the output multiplier of a fiscal stimulus, while raising the degree of deficitfinancing for these transfers also helps. However, precise targeting is much more important under the AM-PF regime than the question of financing, while the opposite is the case with a PM-AF policy mix: then deficit-spending is crucial for the size of the multiplier, and targeting matters less. Under the PM-AF regime fiscal stimulus entails a real exchange rate depreciation which might offset "import leakage" by stimulating net exports, if the share of hand-to-mouth households is low and trade is price elastic enough. Therefore, a PM-AF policy mix might break the Mundell-Fleming prediction that open economies have smaller fiscal multipliers relative to closed economies. Weak Wage Recovery and Precautionary Motives after a Credit Crunch During the economic recovery following the financial crisis many advanced economies saw subdued wage dynamics, in spite of falling unemployment and an increasingly tight labour market. We propose a mechanism which can account for this puzzle and work against usual aggregate demand channels. In a heterogeneous agent model with incomplete markets we endogenize uninsurable idiosyncratic risk through search-and-matching (SAM) frictions in the labour market. In this setting, apart from the usual precautionary saving behaviour, households can self-insure also by settling for lower wages in order to secure a job and thereby avoid becoming borrowing constrained. This channel is especially pronounced for asset-poor agents, already close to the constraint. We introduce a credit crunch into this framework modelled as a gradual tightening of the borrowing constraint (and utilizing a continuous time approach, known as HACT). The perfect foresight transition dynamics feature falling wages despite a tightening labour market and expanding employment. As households suddenly find themselves closer to the borrowing constraint, the increased precautionary motive drives them to accept lower wages in the bargaining process, while firms respond to this by posting more vacancies, leading to a tighter labour market and falling unemployment. If the household deleveraging pressure is persistent enough after the credit crunch, it can explain the weak wage recovery in spite of already stronger aggregate demand.

Download or read book Essays on Full Employment 1942 1972 written by John Herman Groesbeck Pierson and published by Metuchen, N.J. : Scarecrow Press. This book was released on 1972 with total page 400 pages. Available in PDF, EPUB and Kindle. Book excerpt: Compilation of essays outlining proposals for economic policy formulation to ensure full employment in the USA - includes papers on inflation, national budget implications, guaranteed income proposals to reduce poverty, etc., and puts forward suggestions and comments for amendments to the 1946 labour legislation known as the employment act.

Download or read book Three Essays in Empirical Public Economics written by and published by . This book was released on 2014 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation explores three questions in empirical public economics: we investigate the impact of social networks on labour market outcomes in the first essay; we explore the determinants of volunteering behaviour and estimate the effect of employment on volunteering in the second essay; and we examine the impact of political and fiscal decentralization on public provision in the third essay. In each case, we provide consistent estimates by utilizing an exogenous source of variation in key economic outcomes introduced by randomized policy experiments in the first two essays and by a natural experiment in the third essay. In the first essay, we find that among social networks, weak ties have a significant effect on labour market outcomes but strong ties do not have. In the second essay, we find that employment has a significant effect on volunteering behaviour, and that the effect varies in different contexts and depends on the precise channels through which the two are connected. In the final essay, we find that decentralization has a big effect on public provision. But we also find that decentralization affects different public goods differently, and that the key to its impact lies in the incentives facing politicians at the local level.