dc.contributor.author | MOTYOVSZKI, Gergo | |
dc.contributor.author | DOLADO, Juan J. | |
dc.contributor.author | PAPPA, Evi | |
dc.date.accessioned | 2021-04-12T08:43:05Z | |
dc.date.available | 2021-04-12T08:43:05Z | |
dc.date.issued | 2021 | |
dc.identifier.citation | American economic journal : macroeconomics, 2021, Vol. 13, No. 2, pp. 292-332 | en |
dc.identifier.issn | 1945-7707 | |
dc.identifier.issn | 1945-7715 | |
dc.identifier.uri | https://hdl.handle.net/1814/70799 | |
dc.description | First published online: April 2021 | en |
dc.description.abstract | We provide a new channel through which monetary policy has distributional consequences at business cycle frequencies. We show that an unexpected monetary easing increases labor income inequality between high-skilled and less-skilled workers. To rationalize these findings, we build a New Keynesian DSGE model with asymmetric search-and-matching (SAM) frictions and capital-skill complementarity (CSC) in production. We show that CSC on its own introduces a dynamic demand amplification mechanism: the increase in high-skilled employment after a monetary expansion makes complementary capital more productive, encouraging a further rise in investment demand and creating a multiplier effect. SAM asymmetries magnify this channel. | en |
dc.format.mimetype | application/pdf | |
dc.language.iso | en | en |
dc.publisher | American Economic Association | en |
dc.relation.ispartof | American economic journal : macroeconomics | en |
dc.relation.isbasedon | https://hdl.handle.net/1814/72599 | |
dc.rights | info:eu-repo/semantics/openAccess | |
dc.title | Monetary policy and inequality under labor market frictions and capital-skill complementarity | en |
dc.type | Article | en |
dc.identifier.doi | 10.1257/mac.20180242 | |
dc.identifier.volume | 13 | en |
dc.identifier.startpage | 292 | en |
dc.identifier.endpage | 332 | en |
dc.identifier.issue | 2 | en |
dc.description.version | The article is a revised version of a chapter 1 of the author’s EUI PhD thesis, 2021 | |