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Author: Kudlyak, Marianna
Resulting in 1 citation.
1. Kudlyak, Marianna
The Cyclicality of the User Cost of Labor
Journal of Monetary Economics 68 (November 2014): 53-67.
Also: http://www.sciencedirect.com/science/article/pii/S0304393214001135
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Firms; Labor Supply; Modeling; Wages

The user cost of labor is the expected difference between the present discounted value of wages paid to a worker hired in the current period and that paid to a worker hired in the next period. Analogously to the price of any long-term asset, the user cost, not wage, is the relevant price for a firm that is considering adding a worker. I construct its counterpart in the data and estimate that it is substantially more procyclical than average wages or wages of newly-hired workers. I demonstrate an application of the finding using the textbook search and matching model.
Bibliography Citation
Kudlyak, Marianna. "The Cyclicality of the User Cost of Labor." Journal of Monetary Economics 68 (November 2014): 53-67.