Replication data for: Debt Constraints and the Labor Wedge
Principal Investigator(s): View help for Principal Investigator(s) Patrick Kehoe; Virgiliu Midrigan; Elena Pastorino
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
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| data_states_AEA | 12/07/2019 12:54:PM | ||
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text/plain | 14.6 KB | 12/07/2019 07:54:AM |
Project Citation:
Kehoe, Patrick, Midrigan, Virgiliu, and Pastorino, Elena. Replication data for: Debt Constraints and the Labor Wedge. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116315V1
Project Description
Summary:
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Changes in household debt and employment across regions of the U.S. during the Great Recession are highly correlated: regions where the decrease in household debt was most pronounced were also regions where the decline in employment was most severe. We show that the drop in employment in the regions that have experienced the largest decrease in household debt is mostly accounted for by changes in the labor wedge (deviations from a static consumption-leisure choice) as opposed to changes in real wages. We argue that such a pattern is consistent with fluctuations in debt constraints in a standard Bewley-Aiyagari model.
Scope of Project
JEL Classification:
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D14 Household Saving; Personal Finance
E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
E32 Business Fluctuations; Cycles
G01 Financial Crises
J22 Time Allocation and Labor Supply
J31 Wage Level and Structure; Wage Differentials
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
D14 Household Saving; Personal Finance
E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
E32 Business Fluctuations; Cycles
G01 Financial Crises
J22 Time Allocation and Labor Supply
J31 Wage Level and Structure; Wage Differentials
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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