Full Citation

Title: Labor Force Composition and Aggregate Fluctuations

Citation Type: Miscellaneous

Publication Year: 2013

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: Labor composition by gender, age, and education has undergone dra- matic changes over the last forty years in the United States. Furthermore, the volatility of total market hours differs systematically between genders, age, and education groups. I develop a large-scale business cycle model which suggests that demographic changes by gender and education affect labor supply elasticities at the micro level. This has important repercus- sions on aggregate volatility. Changes in labor composition account for 30% of the observed changes in aggregate volatility over this period of time. To solve the model over this large transition, I develop a new algorithm which extends perturbation methods to the stochastic transition path and can be applied to a broad class of DSGE models.

Url: https://eprints.soton.ac.uk/343771/1/Lab_comp.pdf

User Submitted?: No

Authors: Mennuni, Alessandro

Publisher: University of Southampton

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

Countries: United States