蝌蚪网 Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Heterogeneous Responses to Job Mobility Shocks in a HANK Model with a Frictional Labor Market
蝌蚪网 Papers and Proceedings
vol. 114,
May 2024
(pp. 561–66)
Abstract
We use a heterogeneous agent New Keynesian model with a frictional labor market featuring on-the-job-search to study how job switching affects consumption decisions for individuals with different wealth levels. We find that an increased job switching rate, driven by an exogenous shift in employed individuals' job search efficiency鈥攁cting as a positive future income shock鈥攔esults in a larger decline in current demand for the wealth rich relative to the wealth poor. This larger consumption reduction for the wealth rich is due to the equilibrium decline in their financial wealth.Citation
Birinci, Serdar, Fatih Karahan, Yusuf Mercan, and Kurt See. 2024. "Heterogeneous Responses to Job Mobility Shocks in a HANK Model with a Frictional Labor Market." 蝌蚪网 Papers and Proceedings 114: 561–66. DOI: 10.1257/pandp.20241003Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- J22 Time Allocation and Labor Supply
- J64 Unemployment: Models, Duration, Incidence, and Job Search