Template-Type: ReDIF-Paper 1.0
Title: Labor Market Effects of Monetary Policy Across Workers and Firms
Author-Name: Andreas Gulyas
Author-Email: andreas.gulyas@uni-mannheim.de
Author-Name: Matthias Meier
Author-Email: m.meier@uni-mannheim.de
Author-Name: Mykola Ryzhenkov
Author-Email: mykola.ryzhenkov@uni-mannheim.de
Classification-JEL: E24, E32, E52
Keywords: Monetary policy, worker reallocation, heterogeneity, AKM

Abstract: This paper uses Austrian social security records to analyze the effects of ECB
monetary policy on the labor market. Our focus is on the role of worker and firm wage 
components, defined by an Abowd et al. (1999) wage regression. Our findings show
that monetary tightening causes the largest employment losses for low-paid workers
who are employed in high-paying firms before the tightening. Monetary tightening
further causes a reallocation of workers to lower-paying firms. In particular low-paid
workers who were originally employed by low-paying firms are prone to falling down
the firm wage ladder.

Note: 
Length: 30
Creation-Date: 2023-03
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp407
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2023_407