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- W3193452246 abstract "This paper shows that the change in the occupational composition of the labor market in favour of non-routine jobs -i.e. job polarization- flattens the price Phillips Curve (PC). Using data from the European Monetary Union and exploiting the fact that job polarization accelerates during recessions, we obtain two results. First, countries experiencing a bigger shift in the occupational structure during a downturn exhibit a flatter PC afterward. Second, the occupational shifts experienced during the Great Recession and the Sovereign Debt Crisis explain up to a forth of the flattening of the curve in the 2002-2018 period. We reconcile this evidence through a New Keynesian model with unemployment and search and matching frictions. Heterogeneity in the fluidity across segments of the labor market -i.e. differences in the separation and hiring rate across jobs- is the source of PC flattening." @default.
- W3193452246 created "2021-08-30" @default.
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- W3193452246 date "2021-01-01" @default.
- W3193452246 modified "2023-09-27" @default.
- W3193452246 title "Job Polarization and the Flattening of the Price Phillips Curve" @default.
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- W3193452246 doi "https://doi.org/10.2139/ssrn.3871002" @default.
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