Monetary policy, labor force participation, and wage rigidity

被引：0

作者：

Iwasaki, Yuto ^{[1
]}

Kubota, Hiroyuki ^{[2
]}

Muto, Ichiro ^{[3
]}

Shintani, Mototsugu ^{[1
]}

机构：

[1] Univ Tokyo, Tokyo, Japan

[2] Univ Calif Los Angeles, Los Angeles, CA USA

[3] Bank Japan, Chuo, Japan

来源：

JOURNAL OF ECONOMIC DYNAMICS & CONTROL | 2025年 / 175卷

关键词：

Business cycles; Labor force participation rate; Monetary policy shocks; Sticky wages; Unemployment; UNEMPLOYMENT; MARKET; FAMILY; FLOWS; MODEL;

D O I：

10.1016/j.jedc.2025.105085

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

To understand the role of monetary policy in determining the labor force participation rate, we present empirical evidence for Japan and the US. The data suggests that labor force participation declines in Japan but temporarily increases in the US in response to a monetary tightening. To inspect the mechanism, we develop and estimate a New Keynesian model of endogenous labor force participation decisions incorporating wage rigidity. We find that the opposite response of labor force participation can be attributed to a difference in the degree of wage rigidity. Counterfactual analysis based on the estimated models shows that the large-scale monetary easing in recent years helped boost the labor force participation rate in Japan, while its effect was almost neutral in the US.

引用

页数：23

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