00000nam 2200000zi 4500 9.909441 CaOODSP 20230928105338 m o d f cr mn||||||||| 220324t20222022onca ob f000 0 eng d CaOODSP eng rda CaOODSP FB3-5/2022-14E-PDF Alves, Felipe, author. Job ladder and business cycles / by Felipe Alves. [Ottawa] : Bank of Canada = Banque du Canada, 2022. ©2022 1 online resource (ii, 44 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2022-14 "Last updated: March 21, 2022." Includes bibliographical references. "I build a Heterogeneous Agents New Keynesian model with rich labor market dynamics. Workers search both off- and on-the-job, giving rise to a job ladder, where employed workers slowly move toward more productive and better paying jobs through job-to-job transitions, while negative shocks occasionally throw them back into unemployment. The state of the economy includes the distribution of workers over wealth, labor earnings and match productivities. In the wake of an adverse financial shock calibrated to mimic the US Great Recession unemployment dynamics, firms reduce hiring, causing the job ladder to all but "stop working." This leaves wages stagnant for several years, triggering a sharp contraction and slow recovery in consumption and output. On the supply side, the slow pace in worker turnover leaves workers stuck at the bottom of the ladder, effectively cutting labor productivity growth in the aggregate. The interaction between weak demand and low productivity leads to inflation dynamics that resemble the missing disinflation of that period"--Abstract, page ii. Business cycles Econometric models. Labor market Econometric models. Cycles économiques Modèles économétriques. Marché du travail Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2022-14. (CaOODSP)9.806221 PDF 766 KB https://publications.gc.ca/collections/collection_2022/banque-bank-canada/FB3-5-2022-14-eng.pdf