The effects of macroeconomic policy shocks on the UK labour market
Title: The effects of macroeconomic policy shocks on the UK labour market
Author: TAGKALAKIS, Athanasios
Citation: International journal of finance and economics, 2006, Vol. 11, No. 3, pp. 229–244
ISSN: 1099-1158; 1076-9307
This paper discusses the dynamic response of employment, average hours, and real wages to macroeconomic policy shocks in the UK in the period 1970 Q1–2003 Q1. Following a monetary policy shock the adjustment of labour input is primarily along the extensive margin. However, there is also significant adjustment along the intensive margin 1 year after the shock. A government spending shock leads to a fall in employment and hours, whereas real wages rise. This is attributed to the wage bill component of government consumption.
Files in this item
There are no files associated with this item.