Replication data for: Why Does Trend Growth Affect Equilibrium Employment? A New Explanation of an Old Puzzle
- Elsby, Michael W. L.
- Shapiro, Matthew D.
AbstractThat the employment rate appears to respond to changes in trend growth is an enduring macroeconomic puzzle. This paper shows that, in the presence of a return to experience, a slowdown in productivity growth raises reservation wages, thereby lowering aggregate employment. The paper develops new evidence that shows this mechanism is important for explaining the growth-employment puzzle. The combined effects of changes in aggregate wage growth and returns to experience account for all the increase from 1968 to 2006 in nonemployment among low-skilled men and for approximately half the increase in nonemployment among all men. (JEL E24, J24, J31)
Is supplement to
DOI: 10.1257/aer.102.4.1378 (Text)
Elsby, Michael W. L, and Matthew D Shapiro. “Why Does Trend Growth Affect Equilibrium Employment? A New Explanation of an Old Puzzle.” American Economic Review 102, no. 4 (June 2012): 1378–1413. https://doi.org/10.1257/aer.102.4.1378.
- ID: 10.1257/aer.102.4.1378 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-11