Replication data for: Convergence in Macroeconomics: The Labor Wedge
Principal Investigator(s): View help for Principal Investigator(s) Robert Shimer
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| MAC2008-0035_data | 10/12/2019 07:08:PM | ||
|
|
text/plain | 14.6 KB | 10/12/2019 03:08:PM |
Project Citation:
Shimer, Robert. Replication data for: Convergence in Macroeconomics: The Labor Wedge. Nashville, TN: American Economic Association [publisher], 2009. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114039V1
Project Description
Summary:
View help for Summary
I review research on the behavior of the labor wedge, the ratio
between the marginal rate of substitution of consumption for leisure
and the marginal product of labor. According to competitive,
market-clearing macroeconomic models, the ratio is easy to measure
and should be equal to the sum of consumption and labor taxes.
The observation that the wedge is higher in continental Europe than
in the United States has proved useful for understanding the extent
to which taxes can explain differences in labor market outcomes.
The observation that the ratio rises during recessions suggests some
failure of competitive, market-clearing macroeconomic models at
business cycle frequencies. The latter observation has guided recent
research, including work on sticky wage models and job search models.
(JEL E24, E32, J64)
Scope of Project
JEL Classification:
View help for JEL Classification
E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
E32 Business Fluctuations; Cycles
J64 Unemployment: Models, Duration, Incidence, and Job Search
E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
E32 Business Fluctuations; Cycles
J64 Unemployment: Models, Duration, Incidence, and Job Search
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.