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9371 Results

Breaking Down the US Employment Multiplier Using Micro­-Level Data

We construct a new dataset of unanticipated contracts and examine their effects on employment growth. We find positive, significant and persistent effects on firms with fewer than 150 employees and estimate a cost-per­job that is an order of magnitude lower than previous estimates.
Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy JEL Code(s): E, E6, E62

Markups, Pass-Through, and Firm Heterogeneity with Sequentially Mixed Search

Staff Working Paper 2025-7 Alex Chernoff, Allen Head, Beverly Lapham
Market power and pass-through of cost and demand shocks are studied in a market with free entry of heterogeneous firms and consumer mixed search. Equilibrium prices and markups are driven by variation in the elasticity of demand across firms. Improved conditions for buyers can either raise or lower market power.
Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Service sector JEL Code(s): D, D2, D21, D4, D43, E, E3, E31, L, L1, L11
February 13, 2025

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