Monetary Policy, Labor Market, and Sectoral Heterogeneity
- (pp. 491-95)
Abstract
We study the effects of monetary policy on the labor market across different sectors. We find that the employment response is stronger for firms in manufacturing and construction relative to firms in services. The result also holds within small and large firms. Moreover, within sectors, the employment growth in large firms responds more than it does in small firms after monetary contractions; it does so less after monetary expansions. Finally, we find that the differences in employment growth between small and large firms are greater for firms in the manufacturing and construction sectors compared to those in the service sector.Citation
Singh, Aarti, Jacek Suda, and Anastasia Zervou. 2022. "Monetary Policy, Labor Market, and Sectoral Heterogeneity." AEA Papers and Proceedings, 112: 491-95. DOI: 10.1257/pandp.20221095Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- E32 Business Fluctuations; Cycles
- E52 Monetary Policy
- J23 Labor Demand
- L16 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
- L25 Firm Performance: Size, Diversification, and Scope