Flexible Jobs in Macroeconomic Stabilization
Abstract
In this paper, I argue that labor market flexibility, through flexible jobs, serves as an important policy tool for stabilizing the economy. Motivated by the empirical evidence, I build a tractable heterogeneous-agent version of the New Keynesian model in which regular and flexible jobs coexist. I then estimate the model using Bayesian techniques to match salient features of the European labor market and argue that the interaction between incomplete markets and the lower unemployment risk fluctuations associated with a labor market with flexible jobs generates a qualitatively important stabilization effect on the economy.
Type
Publication
José Gabriel Carreño
PhD in Economics
I am a Ph.D. in Economics. Prior to my enrollment as a Ph.D. student, I worked as a research assistant in the Financial Research Unit of the Central Bank of Chile. At the Central Bank, I did research related to financial networks and systemic risk of financial institutions. My current research lies in the intersection between Macroeconomics, Finance, and Labor Economics. I am particularly interested in understanding the macroeconomic implications of different contractual arrangements on the business cycle.