Our Research Focus

Labor Markets

We study the demand and supply for labor, taking into account what distinguishes the market for human capital from other markets. Most recently, our research has focused on the factors that contribute to unemployment during recessions, the relationship between technological change and wage inequality, and the causes of frictions in labor markets.

To learn how labor market institutions and policies influence the actions of workers and firms, read the Richmond Fed's essay in the "Our Perspective" series.

Issue Title Author(s)
First Quarter 2013 Why Labor Force Participation (Usually) Increases when Unemployment Declines Andreas Hornstein
First Quarter 2013 A Cohort Model of Labor Force Participation Marianna Kudlyak
First Quarter 2013 Saving for Retirement with Job Loss Risk Borys Grochulski
Yuzhe Zhang
Fourth Quarter 2012 Debt Default and the Insurance of Labor Income Risk Kartik B. Athreya
Xuan S. Tam
Eric R. Young
Fourth Quarter 2011 Accounting for the Non-Employment of U.S. Men, 1968-2010 Marianna Kudlyak
Thomas A. Lubik
Jonathan Tompkins
First Quarter 2011 Housing and the Great Recession: A VAR Accounting Exercise Samuel E. Henly
Alexander L. Wolman
Fourth Quarter 2010 Hidden Effort, Learning by Doing, and Wage Dynamics Arantxa Jarque
Third Quarter 2010 Instability and Indeterminacy in a Simple Search and Matching Model Michael U. Krause
Thomas A. Lubik
Second Quarter 2010 Are Wages Rigid Over the Business Cycle? Marianna Kudlyak
Fall 2009 The U.S. Establishment-Size Distribution: Secular Changes and Sectoral Decomposition Samuel E. Henly
Juan M. Sanchez
Spring 2009 Estimating a Search and Matching Model of the Aggregate Labor Market Thomas A. Lubik
Summer 2008 CEO Compensation: Trends, Market Changes, and Regulation Arantxa Jarque
Spring 2008 On the Evolution of Income Inequality in the United States Kevin A. Bryan
Leonardo Martinez
Summer 2006 The Productivity of Nations Margarida Duarte
Diego Restuccia
Winter 2006 Are We Working Too Hard or Should We Be Working Harder? A Simple Model of Career Concerns Andrew Foerster
Leonardo Martinez
Summer 2005 What's Driving Wage Inequality? Aaron Steelman
John A. Weinberg
Summer 2005 Unemployment and Vacancy Fluctuations in the Matching Model: Inspecting the Mechanism Andreas Hornstein
Per Krusell
Giovanni L. Violante
Winter 2005 On the Aggregate Labor Supply Yongsung Chang
Sun-Bin Kim
Fall 2003 Implications of the Capital-Embodiment Revolution for Directed R&D and Wage Inequality Andreas Hornstein
Per Krusell
Fall 2003 Firms, Assignments, and Earnings Edward S. Prescott
Spring 2002 Towards a Theory of Capacity Utilization: Shiftwork and the Workweek of Capital Andreas Hornstein
Summer 2000 A Study of U.S. Employment Rates with Emphasis on Gender Considerations Pierre-Daniel G. Sarte
Carl D. Lantz
Spring 1994 The Free Trade Debate: The Illusion of Security Versus Growth Robert L. Hetzel
Fall 1993 Unit Labor Costs and the Price Level Yash P. Mehra
Paper Title Author(s)
April 2014
Single Mothers and the Earned Income Tax Credit: Insurance Without Disincentives? Kartik B. Athreya
Devin Reilly
Nicole B. Simpson
March 2014
Does Redistribution Increase Output? The Centrality of Labor Supply Kartik B. Athreya
Andrew Owens
Felipe Schwartzman
February 2014
Stepping Stone and Option Value in a Model of Postsecondary Education Nicholas Trachter
October 2013
The Shifting and Twisting Beveridge Curve: An Aggregate Perspective Thomas A. Lubik
September 2013
Heterogeneity in Labor Supply Elasticity and Optimal Taxation Marios Karabarbounis
August 2013
The Time-Varying Beveridge Curve Luca Benati
Thomas A. Lubik
August 2013
Productivity Insurance: The Role of Unemployment Benefits in a Multi-Sector Model David L. Fuller
Marianna Kudlyak
Damba Lkhagvasuren
May 2013
Market-based Incentives (Revised December 2013) Borys Grochulski
Yuzhe Zhang
March 2013
Banker Compensation and Bank Risk Taking: The Organizational Economics View Arantxa Jarque
Edward S. Prescott
March 2013
The Supply of College-Educated Workers: The Roles of College Premia, College Costs, and Risk Kartik B. Athreya
Janice Eberly
November 2012
Accounting for Unemployment: The Long and Short of It Andreas Hornstein
June 2012
Accounting for Unemployment in the Great Recession: Nonparticipation Matters Marianna Kudlyak
Felipe Schwartzman
April 2012
Systematic Job Search: New Evidence from Individual Job Application Data (Revised May 2013) Marianna Kudlyak
Damba Lkhagvasuren
Roman Sysuyev
May 2011
Aggregate Labor Market Dynamics in Hong Kong Thomas A. Lubik
August 2010
The Cyclical Price of Labor When Wages Are Smoothed Marianna Kudlyak
June 2010
On-the-Job Search and the Cyclical Dynamics of the Labor Market Michael U. Krause
Thomas A. Lubik
September 2009
The Cyclicality of the User Cost of Labor (Revised: March 2013) Marianna Kudlyak
June 2009
Unemployment Insurance with a Hidden Labor Market Fernando Álvarez-Parra
Juan M. Sanchez
March 2008
Inflation Dynamics with Search Frictions: A Structural Econometric Analysis Michael U. Krause
David Lopez-Salido
Thomas A. Lubik
December 2006
Risky Human Capital and Deferred Capital Income Taxation Borys Grochulski
Tomasz Piskorski
November 2006
Technology-Policy Interaction in Frictional Labor Markets Andreas Hornstein
Per Krusell
Giovanni L. Violante
September 2006
The Political Economy of Labor Subsidies Marina Azzimonti
Eva de Francisco
Per Krusell
September 2006
Technical Appendix for "Frictional Wage Dispersion in Search Models: A Quantitative Assessment" Andreas Hornstein
Per Krusell
Giovanni L. Violante
September 2006
Frictional Wage Dispersion in Search Models: A Quantitative Assessment Andreas Hornstein
Per Krusell
Giovanni L. Violante
August 2006
Understanding How Employment Responds to Productivity Shocks in a Model with Inventories Yongsung Chang
Andreas Hornstein
Pierre-Daniel G. Sarte
May 2006
Home Production Yongsung Chang
Andreas Hornstein
February 2006
On the Aggregate and Distributional Implications of Productivity Differences across Countries Andrés Erosa
Tatyana Koreshkova
Diego Restuccia
January 2006
Reputation, Career Concerns, and Job Assignments (Revised Apr. 2009) Leonardo Martinez
December 2005
Optimal Wealth Taxes with Risky Human Capital Borys Grochulski
Tomasz Piskorski
September 2005
A Quantitative Theory of the Gender Gap in Wages Andrés Erosa
Luisa Fuster
Diego Restuccia
August 2005
A General Equilibrium Analysis of Parental Leave Policies Andrés Erosa
Luisa Fuster
Diego Restuccia
April 2005
Do Technological Improvements in the Manufacturing Sector Raise or Lower Employment? Yongsung Chang
Jay H. Hong
April 2005
The Replacement Problem in Frictional Economies: A Near-Equivalence Result Andreas Hornstein
Per Krusell
Giovanni L. Violante
December 2004
The Effects of Technical Change on Labor Market Inequalities Andreas Hornstein
Per Krusell
Giovanni L. Violante
December 2004
Productivity, Employment, and Inventories Pierre-Daniel G. Sarte
Andreas Hornstein
Yongsung Chang
January 2004
Heterogeneity and Aggregation in the Labor Market: Implications for Aggregate Preference Shifts Yongsung Chang
Sun-Bin Kim
July 2003
Labor Supply Shifts and Economic Fluctuations Yongsung Chang
Frank Schorfheide
July 2003
On the Employment Effect of Technology: Evidence from U.S. Manufacturing for 1958-1996 Yongsung Chang
Jay H. Hong
July 2003
From Individual to Aggregate Labor Supply: A Quantitative Analysis based on a Heterogeneous Agent Macroeconomy Yongsung Chang
Sun-Bin Kim
August 2002
Vintage Capital as an Origin of Inequalities Giovanni L. Violante
Per Krusell
Andreas Hornstein
August 2001
The Role of Real Wages, Productivity, and Fiscal Policy in Germany's Great Depression 1928-37 Jonas D.M. Fisher
Andreas Hornstein
July 2001
Macroeconomic Fluctuations and Bargaining Huberto M. Ennis
March 2001
Sticky Prices and Inventories: Production Smoothing Reconsidered Pierre-Daniel G. Sarte
Andreas Hornstein
September 2000
Optimal Taxation in Life-Cycle Economies Andrés Erosa
Martin Gervais
December 1998
Staggered Prices and Inventories: Production Smoothing Reconsidered Pierre-Daniel G. Sarte
Andreas Hornstein
August 1998
The Dynamic Effects of Government Spending Shocks on Employment and Work Hours Mingwei Yuan
Wenli Li
March 1998
Can a Matching Model Explain the Long-Run Increase in Canada's Unemployment Rate? (Published: Apr. 1996; Revised: Jan. 1998) Andreas Hornstein
Mingwei Yuan
March 1998
External vs. Internal Learning-by-Doing in an R&D Based Growth Model Andreas Hornstein
Dan Peled
April 1989
Wage Growth and the Inflation Process: An Empirical Note Yash P. Mehra
April 1979
The Determinants of Labor Force Participation: An Empirical Analysis William E. Cullison
June 1974
An Employment Pressure Index as an Alternative Measure of Labor Market Conditions William E. Cullison