BIBLIOGRAPHY

Publications, working papers, and other research using data resources from IPUMS.

Full Citation

Title: Waiting for the Paycheck: Individual and Aggregate Effects of Wage Payment Frequency

Citation Type: Working Paper

Publication Year: 2016

Abstract: This paper shows that the frequency at which workers are paid affects the within-month patterns of both household expenditure and aggregate economic activity. To identify causal effects, I exploit two novel sources of exogenous variation in pay frequency in the US. First, using a (as-good-as-random) variation in the pay frequency of retired couples, I show that those who are paid more frequently have smoother expenditure paths. Second, I take advantage of the cross-state variation in laws, and compare the patterns of economic activity in states with different legislation on pay frequency of wages. I document that low pay frequencies lead to within-month business cycles when many workers are paid on the same dates, which generates costly congestion in sectors with capacity constraints. These findings have important policy implications in a context where firms and workers do not internalize such congestion externalities, which generates market equilibria with suboptimally low pay frequencies.

Url: https://cadmus.eui.eu/handle/1814/40804

User Submitted?: No

Authors: Berniell, Ines

Series Title: EUI Working Papers

Publication Number: 2016_05

Institution: European University Institute

Pages:

Publisher Location:

Data Collections: IPUMS Time Use - ATUS

Topics: Labor Force and Occupational Structure, Other

Countries:

IPUMS NHGIS NAPP IHIS ATUS Terrapop