Publication:
Monetary policy and inequality under labor market frictions and capital-skill complementarity

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorPappa, Evi
dc.contributor.authorDolado, Juan José
dc.contributor.authorMotyovszki, Gergo
dc.contributor.funderMinisterio de Economía y Competitividad (España)es
dc.date.accessioned2022-05-11T18:16:57Z
dc.date.available2022-05-11T18:16:57Z
dc.date.issued2021-04-02
dc.description.abstractWe 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 f indings, 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.description.sponsorshipWe gratefully acknowledge financial support from the EUI (research grant IE-54) and the Spanish Ministerio de Economía y Competitividad (grant ECO2016-78652).en
dc.identifier.bibliographicCitationDolado, J. J., Motyovszki, G., & Pappa, E. (2021). Monetary policy and inequality under labor market frictions and capital-skill complementarity. American Economic Journal: Macroeconomics, 13 (2), pp. 292-332.es
dc.identifier.doihttps://doi.org/10.1257/mac.20180242
dc.identifier.issn1945-7707
dc.identifier.publicationfirstpage292es
dc.identifier.publicationissue2es
dc.identifier.publicationlastpage332es
dc.identifier.publicationtitleAmerican Economic Journal-Macroeconomicses
dc.identifier.publicationvolume13es
dc.identifier.urihttps://hdl.handle.net/10016/34784
dc.identifier.uxxiAR/0000029310
dc.language.isoenges
dc.publisherAmerican Economic Associationes
dc.relation.projectIDGobierno de España. ECO2016-78652-Pes
dc.rights© American Economic Associationes
dc.rights.accessRightsopen accesses
dc.subject.ecienciaEconomíaes
dc.subject.jelE32
dc.subject.jelE52
dc.subject.jelE24
dc.subject.jelE12
dc.subject.jelE25
dc.subject.jelJ63
dc.subject.otherMonetary policyen
dc.subject.otherSearch and matchingen
dc.subject.otherCapital-skill complementarityen
dc.subject.otherInequalityen
dc.titleMonetary policy and inequality under labor market frictions and capital-skill complementarityen
dc.typeresearch article*
dc.type.hasVersionVoR*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
monetary_AEJM_2021.pdf
Size:
1.65 MB
Format:
Adobe Portable Document Format
Description:
Download
Collections
DE - Artículos de Revistas