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dc.contributor.authorBERNIELL, Inés
dc.date.accessioned2016-04-18T12:39:29Z
dc.date.available2016-04-18T12:39:29Z
dc.date.issued2016
dc.identifier.issn1830-7728
dc.identifier.urihttps://hdl.handle.net/1814/40804
dc.description.abstractThis 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.en
dc.format.mimetypeapplication/pdfen
dc.language.isoenen
dc.relation.ispartofseriesEUI MWPen
dc.relation.ispartofseries2016/05en
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.subjectPay frequencyen
dc.subjectWithin-month business cyclesen
dc.subjectCongestionen
dc.subjectJ33en
dc.subjectE21en
dc.subjectE32en
dc.titleWaiting for the paycheck : individual and aggregate effects of wage paymenten
dc.typeWorking Paperen


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