Data and Code for: The State Dependent Effectiveness of Hiring Subsidies

Principal Investigator(s): View help for Principal Investigator(s) Sebastian Graves, Federal Reserve Board

Name	File Type	Size	Last Modified
.Rhistory	text/plain	18.8 KB	05/05/2022 10:22:AM
A_newton.m	text/x-objcsrc	408 bytes	05/05/2022 10:22:AM
Bartik.m	text/x-matlab	9.1 KB	05/05/2022 10:22:AM
Bartik2.m	text/x-matlab	9.5 KB	05/05/2022 10:22:AM
Cond_Het.m	text/x-matlab	4.4 KB	05/05/2022 10:22:AM
F_Removal.csv	text/csv	714 bytes	05/05/2022 10:22:AM
Gap_Den.csv	text/csv	8.3 KB	05/05/2022 10:22:AM
IRF.m	text/x-matlab	6.1 KB	05/05/2022 10:22:AM
Model_JC_States.csv	text/csv	9.9 MB	05/05/2022 10:22:AM
Model_JD_States.csv	text/csv	9.9 MB	05/05/2022 10:22:AM

Project Description

Summary: The responsiveness of job creation to shocks is procyclical, while the responsiveness of job destruction is countercyclical. This new finding can be explained by a heterogeneous-firm model in which hiring costs lead to lumpy employment adjustment. The model predicts that policies that aim to stimulate employment by targeting the job creation margin, such as hiring subsidies, are significantly less effective in recessions: These are times when few firms are near their hiring threshold and many firms are near their firing threshold. Policies that target the job destruction margin, such as employment protection subsidies, are particularly effective at such times.

Scope of Project

JEL Classification:
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E32 Business Fluctuations; Cycles
      E63 Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

Geographic Coverage: USA

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Published Versions

V1 [2023-03-27]

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