Carlos Madeira1 y Leonardo Salazar2.
1. Banco Central de Chile, firstname.lastname@example.org
2. Universidad del Bío-Bío, email@example.com.
We use a factor-augmented vector autoregressive (FAVAR) model to analyze the effect of a contractionary monetary shock on macroeconomic aggregates and labor market indicators for different demographic groups in Chile classifed by industry, age, and income quintile. We find that for most groups the job-separation rate and idiosyncratic earnings volatility increase after interest rate rise. The response of the job-finding rate is more mixed with decreases in some groups and an increase for others after an interest rate shock. The labor market in the primary sector is the least sensitive to monetary shocks.
Participación en sesión:
Dinámicas regionales del mercado laboral.