Wage Cyclicality and Labor Market Sorting

Figueiredo, Ana

doi:10.1257/aeri.20210161

Cited by 3 publications

(4 citation statements)

References 37 publications

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“…Non-employment is defined by reporting any weeks not employed in the month prior to the start of the new match. Consistent with the estimates in Gertler, Huckfeldt, and Trigari (2020) and Figueiredo (2022), with fixed effects as the implicit quality control, the estimates suggest more procyclical wages for job-to-job hires: their coefficient for 1 pp of unemployment is −2.22% (standard error 0.47%) versus −1.30% (standard error 0.34%)…”

Section: Robustness To Measures Of the Business Cyclesupporting

confidence: 61%

“…We restrict our sample to matches active at the survey interview. If the respondent works multiple jobs, we select the one with higher hours per week (or longer tenure in the case of a tie).38 Our fixed-effects estimate of cyclicality for new-hire wages is in line with findings byFigueiredo (2022) for NLSY data and byGertler, Huckfeldt, and Trigari (2020) for SIPP data.…”

mentioning

confidence: 53%

“…They demonstrate history dependence in wages by showing that wage growth within matches reflects, not only current economic conditions, but also conditions earlier in the match. Other papers studying cyclicality of match quality include Devereux (2004) and Figueiredo (2022).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Quality-Adjusted Cyclical Price of Labor

Bils¹,

Kudlyak²,

Lins³

2023

Journal of Labor Economics

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Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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Section: Robustness To Measures Of the Business Cyclesupporting

confidence: 61%

mentioning

confidence: 53%

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The Quality-Adjusted Cyclical Price of Labor

Bils¹,

Kudlyak²,

Lins³

2023

Journal of Labor Economics

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“…According to Figueiredo (2022), 94% of all agricultural employment worldwide in 2016 was unofficial, demonstrating the prevalence of informal work in this industry. The prevalence of informality in rural areas draws attention to the shortage of decent work that rural workers experience, demonstrating the necessity for efficient solutions to guarantee that agricultural workers have approach to high-best jobs.…”

Section: Literature Reviewmentioning

confidence: 99%

Decoding the Challenges of Promoting Decent Work in Rural and Urban Labor Markets

Shaikh¹

2023

pjia

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The current study explores that the quality of life is intensely influenced by our living environment, including access to education, healthcare, employment, and culture. Living in rural or urban areas has distinct effects on the local labor market, including the sector and occupation composition, working arrangements, and education requirements. However, 56% of the total population of the world resides in urban and 44% in rural areas, it is essential to consider the distinct conditions and labor market characteristics of both settings when analyzing socioeconomic development. Research shows significant differences in labor force participation, labor underutilization, and employment quality between rural and urban areas. Sustainable development and decent work present different challenges in each setting, emphasizing the need for directed policies and more research sought at progressing workers' conditions universally. The COVID-19 pandemic has also affected both rural and urban areas, making it necessary to monitor and address the evolving situation in both settings for an inclusive recovery. Overall, recognizing the conditions of all labor force and the differences between rural and urban labor markets this research has produced policies recommendations for both urban and rural market employments opportunities for achieving decent work for all.

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The Quality-Adjusted Cyclical Price of Labor

Bils¹,

Kudlyak²,

Lins³

2023

ERWP

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Typical measures of wages, such as average hourly earnings, fail to capture cyclicality in the effective cost of labor in the presence of (i) cyclical fluctuations in the quality of worker-firm matches, or (ii) wages being smoothed within employment matches. To address both concerns, we estimate cyclicality in labor’s user cost exploiting the longrun wage in a match to control for match quality. Using NLSY data for 1980 to 2019, we identify three channels by which hiring in a recession affects user cost: It lowers the new-hire wage; it lowers wages going forward in the match; but it also results in higher subsequent separations. All totaled, we find that labor’s user cost is highly procyclical, increasing by more than 4% for a 1 pp decline in the unemployment rate. For large recessions, like the Great Recession, that implies a decline in the price of labor of about 15%.

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Wage Cyclicality and Labor Market Sorting

Cited by 3 publications

References 37 publications

The Quality-Adjusted Cyclical Price of Labor

The Quality-Adjusted Cyclical Price of Labor

Decoding the Challenges of Promoting Decent Work in Rural and Urban Labor Markets

The Quality-Adjusted Cyclical Price of Labor

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