Title of article
The greatmoderationinmicrolaborearnings
Author/Authors
John Sabelhaus، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2010
Pages
13
From page
391
To page
403
Abstract
Between1980andtheearly1990sthevariabilityoflaborearningsgrowthratesacross
the prime-ageworkingpopulationfellsignificantly.Thisdeclineandtimingare
consistentwithothermacroandmicroobservationsaboutgrowthvariabilitythatare
collectivelyreferredtoasthe‘‘GreatModeration.’’Thevariabilityofearningsgrowthis
negativelycorrelatedwithageatanypointintime,andtheU.S.workingagepopulation
got olderduringthisperiodbecausetheBabyBoomwasaging.However,thedecreasein
variabilitywasroughlyuniformacrossallagegroups,sopopulationagingisnotthe
sourceoftheoveralldecline.Thevarianceoflogchangesalsodeclinedatmulti-year
frequenciesinsuchawayastosuggestthatbothpermanentandtransitorycomponents
of earningsshocksbecamemoremoderate.Asimpleidentificationstrategyfor
separatingageandcohorteffectsshowsaveryintuitivepatternofpermanentand
transitoryshocksoverthelifecycle,andconfirmsthatashiftovertimeinthestochastic
process occurredevenaftercontrollingforageeffects
Keywords
Labor earningsEarnings volatilityGreat moderation
Journal title
Journal of Monetary Economics
Serial Year
2010
Journal title
Journal of Monetary Economics
Record number
846399
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