全球智库信息集成服务系统(G2TT): DP12734 Monetary Policy and Inequality under Labor Market Frictions and Capital-Skill Complementarity

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP12734
	DP12734 Monetary Policy and Inequality under Labor Market Frictions and Capital-Skill Complementarity
	Juan Dolado; Gergo Motyovszki; Evi Pappa
发表日期	2018-02-19
出版年	2018
语种	英语
摘要	Contrary to previous beliefs, recent empirical work has found that the effects of monetary policy on inequality are far from modest. In order to improve our understanding of the channels through which monetary policy has distributional consequences, we build a New Keynesian model with incomplete asset markets, asymmetric search and matching (SAM) frictions across skilled and unskilled workers and, foremost, capital-skill complementarity (CSC) in the production function. Our main finding is that an unexpected monetary easing increases labor income inequality between high and low-skilled workers, and that the interaction between CSC and SAM asymmetry is crucial in delivering this result. This is so since the increase in labor demand driven by a monetary expansion leads to larger wage increases for high-skilled workers than for low-skilled workers since the former have smaller matching frictions (SAM-asymmetry channel). Moreover, the increase in capital demand amplifies this wage divergence due to skilled workers being more complementary to capital than substitutable unskilled workers are (CSC channel). Strict inflation targeting is often the most successful rule in stabilizing measures of earnings inequality even in the presence of shocks which introduce a trade-off between stabilizing inflation and aggregate demand.
主题	Labour Economics ; Monetary Economics and Fluctuations
关键词	monetary policy Search and matching Capital-skill complementarity Inequality
URL	https://cepr.org/publications/dp12734
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/541544
推荐引用方式 GB/T 7714	Juan Dolado,Gergo Motyovszki,Evi Pappa. DP12734 Monetary Policy and Inequality under Labor Market Frictions and Capital-Skill Complementarity. 2018.