Calendrier du 16 janvier 2024
Applied Economics Lunch Seminar
Du 16/01/2024 de 12:30 à 13:30
Salle R2.21
BROER Tobias (Université Paris 1 Panthéon-Sorbonne & PSE)
The Curious Incidence of Monetary Policy Across the Income Distribution
We use high-frequency German administrative data to study the effects of monetary policy on income and employment across the earnings distribution. Earnings growth at the bottom of the distribution is substantially more elastic to policy shocks. This unequal incidence is driven by differences in the response of employment risk across the distribution: job loss is more countercyclical for lower-earnings households. Viewed through the lens of a standard incomplete-markets model, the heterogeneous incidence substantially amplifies the equilibrium response of aggregate consumption to shocks.