Finanzmärkte, Arbeitsmärkte und Löhne: Evidenz, Theorie und makroökonomische Implikationen
This proposal continues the
work on our prior proposal “Financial Markets, Labor Markets, and Wages: Evidence,
Theory, and Macroeconomic Implications”. Our project is located at the
intersection of macroeconomics, finance
and labor economics and asks how firms’ financial constraints affect labor demand and wages.
During the first funding phase, we developed a macroeconomic equilibrium model and confronted the
model with microeconomic firm-worker data. We showed that the wage response to financial
constraints matters for business cycle amplification and for policy.
In the second funding
phase, we want to focus on monetary policy. We ask how monetary policy affects financial constraints in
heterogeneous firms and how this passes through to wages, and wage and labor heterogeneity between
firms. This is important for at least two reasons: (1) to analyze how monetary policy transmits in
recessions with tight financial constraints, and (2) to quantify the role of
monetary policy and financial
constraints for between-firm wage differentials and the resulting wage
inequality.
We want to continue in
three steps: First, we have already created a novel data set that links
firmworker data to balance sheet
information on banks. This allows a clear identification of firms’ financial constraints. Combining this
with established measures of monetary policy intervention, we want to investigate how the credit
channel of monetary policy affects wages. Second, we want to analyze how this transmission changes
under negative policy rates. In particular, we want to investigate whether financial constraints
increased because of a reduction in relationship banking. Third, we propose a
novel way to jointly identify the
demand and the credit channel of monetary policy and how these channels affect heterogeneous firms
and between firm wage differentials.
Publications
Project start:
01. February 2024
Project end:
31. January 2027
Project management:
Prof. Dr. Almut Balleer
Project staff:
Marvin Nöller
Funding:
Deutsche Forschungsgemeinschaft