RT Generic
T1 Accounting for labor productivity puzzle
A1 Bornukova, Kateryna
AB In the recent decades aggregate labor productivity in the U.S. became counter-cyclical (labor productivity puzzle). At the same time the U.S. experienced dramaticchanges in the structure of households due to increased female labor force partici-pation. I show that changes in the household structure and corresponding changesin labor supply behavior can explain the labor productivity puzzle. I build a modelwith heterogeneous one- and two-earner households and aggregate technology shocksand calibrate it to the current U.S. data. I impose the household structure change inthe model and show that the behavior of labor productivity changes from procyclicalto countercyclical, as in the U.S. I also show that individual labor supply volatilitydepends on the role of the earner in the household. Increase in the proportion ofmultiple-earner households leads to increase in aggregate labor supply volatility.
YR 2016
FD 2016-02-17
LK https://hdl.handle.net/10016/22320
UL https://hdl.handle.net/10016/22320
LA eng
NO The author acknowledges the financial assistance from SIDA
DS e-Archivo
RD 17 jul. 2024