dc.contributor.author | BERNIELL, Inés | |
dc.date.accessioned | 2016-04-18T12:39:29Z | |
dc.date.available | 2016-04-18T12:39:29Z | |
dc.date.issued | 2016 | |
dc.identifier.issn | 1830-7728 | |
dc.identifier.uri | https://hdl.handle.net/1814/40804 | |
dc.description.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. | en |
dc.format.mimetype | application/pdf | en |
dc.language.iso | en | en |
dc.relation.ispartofseries | EUI MWP | en |
dc.relation.ispartofseries | 2016/05 | en |
dc.rights | info:eu-repo/semantics/openAccess | en |
dc.subject | Pay frequency | en |
dc.subject | Within-month business cycles | en |
dc.subject | Congestion | en |
dc.subject | J33 | en |
dc.subject | E21 | en |
dc.subject | E32 | en |
dc.title | Waiting for the paycheck : individual and aggregate effects of wage payment | en |
dc.type | Working Paper | en |