E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital

• Firm-Specific Shocks and Aggregate Fluctuations

  Staff Working Paper 2016-51 Leonid Karasik, Danny Leung, Ben Tomlin

  In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Firm dynamics, Market structure and pricing JEL Code(s): E, E2, E22, E23, E24, E3, L, L6

• Downward Nominal Wage Rigidity in Canada: Evidence from Micro- Level Data

  Staff Working Paper 2016-40 Dany Brouillette, Olena Kostyshyna, Natalia Kyui

  We assess the importance of downward nominal wage rigidity (DNWR) in Canada using both firm- and worker-level microdata. In particular, we analyze employer-level administrative data from the Major Wage Settlements (MWS) and household-based survey data from the Survey of Labour Income Dynamics (SLID).

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Labour markets JEL Code(s): E, E2, E24, J, J3, J30

• The US Labour Market: How Much Slack Remains?

  Staff Analytical Note 2016-9 Robert Fay, James Ketcheson

  Despite the US unemployment rate being close to estimates of the non-accelerating-inflation rate of unemployment (NAIRU), measures of underemployment remain elevated, which could be an indication of remaining labour market slack. The shares of involuntary part-time workers and long-term unemployment are high relative to the current stage of the business cycle, suggesting available labour inputs are being underutilized.

  Content Type(s): Staff research, Staff analytical notes Topic(s): International topics, Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E24, J, J2, J21, J23

• Un examen plus approfondi des pressions salariales au Canada

  Staff Analytical Note 2016-6 Dany Brouillette, Laurence Savoie-Chabot

  In this note, we provide a brief outline of the recent developments in wage measures in Canada. We then assess whether wage growth is consistent with its fundamentals.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Labour markets, Productivity JEL Code(s): E, E2, E24, J, J3, J30

• Monetary Commitment and the Level of Public Debt

  Staff Working Paper 2016-3 Stefano Gnocchi, Luisa Lambertini

  We analyze the interaction between committed monetary policy and discretionary fiscal policy in a model with public debt, endogenous government expenditures, distortive taxation and nominal rigidities.

  Content Type(s): Staff research, Staff working papers Topic(s): Credibility, Fiscal policy, Inflation targets, Monetary policy framework JEL Code(s): E, E2, E24, E3, E32, E5, E52

• Reconciling the Differences in Aggregate U.S. Wage Series

  Staff Working Paper 2016-1 Julien Champagne, André Kurmann, Jay Stewart

  Average hourly real wage series from the Labor Productivity and Costs (LPC) program and the Current Employment Statistics (CES) program have evolved very differently over the past decades.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Labour markets JEL Code(s): E, E0, E01, E2, E24, E3, E30, J, J3, J30

• Extending the Labour Market Indicator to the Canadian Provinces

  Staff Discussion Paper 2016-2 Alexander Fritsche, Katherine Ragan

  Calculating the labour market indicator (LMI) at the provincial level provides useful insights into Canada’s regional economies and reveals differing trends in the state of underlying labour market conditions across provinces. Conclusions based on the Canadian LMI do not necessarily translate to the provinces. In most cases, the correlations between the provincial LMIs and the underlying labour market variables have the expected sign.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E24, E27, J, J2, J21, J23