What caused the recession of 2008? : hints from labor productivity / Casey Mulligan.

By: Contributor(s): Material type: TextTextSeries: Working paper series (National Bureau of Economic Research) ; no. 14729.Publication details: Cambridge, MA : National Bureau of Economic Research, 2009.Description: 13 p. : ill. ; 22 cmSubject(s): LOC classification:
  • HB1 .N38 no.14729
Online resources: Available additional physical forms:
  • Also available as an electronic book via the World Wide Web.
Summary: A labor market tautology says that any change in labor usage can be decomposed into a movement along a marginal productivity schedule and a shift of the schedule. I calculate this decomposition for the recession of 2008, assuming an aggregate Cobb-Douglas marginal productivity schedule, and find that all of the decline in employment and hours since December 2007 is a movement along the schedule. This finding suggests that a reduction in labor supply and/or an increase in labor market distortions are major factors in the 2008 recession. The decline in aggregate consumption suggests that the reduction in labor supply (if any) is neither a wealth nor an intertemporal substitution effect. "Sticky real wages" or the emergence of significant work disincentives are possible explanations for these findings.
Tags from this library: No tags from this library for this title. Log in to add tags.
Star ratings
    Average rating: 0.0 (0 votes)
Holdings
Item type Current library Collection Call number Copy number Status Date due Barcode
Book Book University of Macedonia Library Βιβλιοστάσιο Β (Stack Room B) Research Papers HB1.N38 no.14729 (Browse shelf(Opens below)) 1 Available 0013125659

Includes bibliographical references (p. 12-13).

A labor market tautology says that any change in labor usage can be decomposed into a movement along a marginal productivity schedule and a shift of the schedule. I calculate this decomposition for the recession of 2008, assuming an aggregate Cobb-Douglas marginal productivity schedule, and find that all of the decline in employment and hours since December 2007 is a movement along the schedule. This finding suggests that a reduction in labor supply and/or an increase in labor market distortions are major factors in the 2008 recession. The decline in aggregate consumption suggests that the reduction in labor supply (if any) is neither a wealth nor an intertemporal substitution effect. "Sticky real wages" or the emergence of significant work disincentives are possible explanations for these findings.

Also available as an electronic book via the World Wide Web.

There are no comments on this title.

to post a comment.
European Union Digital Greece ESPA Default