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Bank:Federal Reserve Bank of St. Louis  Content Type:Working Paper 

Working Paper
On the Transition to Sustained Growth: The Importance of Recent Agricultural Employment

We study a model where a single good can be produced using a diminishing-returns technology (Malthus) and a constant-returns technology (Solow). We map the former to agriculture and show that the share of agricultural employment declines at a constant rate during the economic transition and that recent observations on the share are sufficient to estimate the onset of transition. Our model implies that (i) output growth is higher and increasing after the onset of transition, (ii) during the transition, it is a first-order autoregressive process, and (iii) the rate of decline in the share of ...
Working Papers , Paper 2023-026

Working Paper
The Heterogeneous Impacts of Job Displacement: Evidence from Canadian Job Separation Records

When estimating earnings losses upon job separations, existing strategies focus on separations in mass layoffs to distinguish involuntary separations from voluntary separations. We revisit the measurement of the sources and consequences of involuntary separations using Canadian job separation records. We refine existing strategies and find that only a quarter of mass-layoff separations are indeed layoffs. We provide guidance on how to effectively filter out spurious separations when using databases with sparse information on separations. Isolating involuntary mass-layoff separations with our ...
Working Papers , Paper 2023-022

Working Paper
The Phillips Curve's and Relative Phillips Curve's Slopes: Why So Different?

I estimate the effect of labor market tightness on wage inflation from 2004-2019 using aggregate data and a hybrid New Keynesian Phillips curve. The Phillips curve slope, i.e., the effect of a unit increase in the vacancy-unemployment ratio on inflation, is about 3.4 percentage points. Then, I estimate the model using the corresponding panel-level data with a time-fixed-effect regression: The resulting regional (i.e., relative) Phillips curve slope is about 0.7. This large difference between the two slopes is robust to controlling for various measures of inflation expectations and for supply ...
Working Papers , Paper 2025-010

Working Paper
The Dual Beveridge Curve

The recent behavior of the U.S. Beveridge curve — its outward shift and changing slope — has puzzled economists and is difficult to reconcile with standard explanations based on gradual structural change or declining matching efficiency. We propose a dual-vacancy model in which firms post two distinct types of vacancies: those targeting unemployed workers and those designed to hire already employed workers through poaching. These two types of vacancies operate in segmented sub-markets with separate matching processes. Using U.S. labor market data from 1978 to 2024, we estimate the ...
Working Papers , Paper 2022-021

Working Paper
Scalable versus Productive Technologies

CORRECT ORDER OF AUTHORS: Hubmer, Chan, Ozkan, Salgado, Hong. Are larger firms more productive, more scalable, or both? We use firm-level panel data from thirteen countries and employ a broad set of methods to estimate factor elasticities---capturing returns to scale (RTS)---and total factor productivity (TFP). We find substantial RTS heterogeneity within industries, with larger firms exhibiting higher RTS driven by greater intermediate input elasticities. TFP, by contrast, rises with firm size only up to the top decile before declining. Incorporating RTS heterogeneity into a standard model ...
Working Papers , Paper 2024-019

Working Paper
Mark Carlson’s The Young Fed: A Review Essay

Working Papers , Paper 2025-008

Working Paper
College Access and Intergenerational Mobility

This paper studies how college admissions preferences for lower-income students affect intergenerational earnings mobility. We develop a quantitative model of college choice with quality-differentiated colleges. We find that admissions preferences substantially increase lower-income enrollment in selective colleges and intergenerational earnings mobility. The associated losses of aggregate earnings are very small.
Working Papers , Paper 2024-030

Working Paper
The Impact of Bretton Woods International Capital Controls on the Global Economy and the Value of Geopolitical Stability: A General Equilibrium Analysis

This paper quantifies the positive and normative effects of Bretton Woods capital controls on global economic activity. It applies a three-region DSGE model of the U.S., Western Europe, and the Rest of the World (ROW) that measures capital controls using observed regional consumption growth differences. We find sizable controls during Bretton Woods that prevented ROW capital from flowing to the U.S., and which reduced U.S. welfare and raised ROW welfare. By preventing capital flight in developing economies, we find that Bretton Woods controls promoted the U.S. foreign policy objective of ...
Working Papers , Paper 2020-042

Working Paper
On the Transition to Sustained Growth: The Importance of Recent Agricultural Employment

We study a model where a single good can be produced using a diminishing-returns technology (Malthus) and a constant-returns technology (Solow). We map the former to agriculture and show that the share of agricultural employment declines at a constant rate during the economic transition and that recent observations on the share are sufficient to estimate the onset of transition. Our model implies that (i) output growth is higher and increasing after the onset of transition, (ii) during the transition, it is a first-order autoregressive process, and (iii) the rate of decline in the share of ...
Working Papers , Paper 2023-026

Working Paper
Hours Worked and Lifetime Earnings Inequality

We document large differences in lifetime hours of work using data from the NLSY79 and argue that these differences are an important source of inequality in lifetime earnings. To establish this we develop and calibrate a rich heterogeneous agent model of labor supply and human capital accumulation that allows for heterogeneity in preferences for work, initial human capital and learning ability, as well as idiosyncratic shocks to human capital throughout the life-cycle. Our calibrated model implies that almost 20 percent of the variance in lifetime earnings is accounted for by differences in ...
Working Papers , Paper 2024-024

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