On-the-Job Learning and News-Driven Business Cycles
This paper proposes a new channel of on-the-job learning to explain the positive comovement between consumption and employment following good news about future productivity. The new recruits can generate an additional stream of output production in all future periods, and the firm's labor deman...
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| Veröffentlicht in: | Journal of money, credit and banking credit and banking, 2015-03, Vol.47 (2-3), p.261-294 |
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| container_end_page | 294 |
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| container_issue | 2-3 |
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| container_title | Journal of money, credit and banking |
| container_volume | 47 |
| creator | CHEN, KUAN-JEN LAI, CHING-CHONG |
| description | This paper proposes a new channel of on-the-job learning to explain the positive comovement between consumption and employment following good news about future productivity. The new recruits can generate an additional stream of output production in all future periods, and the firm's labor demand is thus characterized by the forward-looking property. Therefore, the firm is motivated to hire more new recruits in advance in response to good news about future productivity. Once the increase in labor demand is greater than the decrease in labor supply caused by the income effect, the coincident rise in consumption and employment can be driven by the news shock. When such a channel is paired with investment adjustment costs and the endogenous capacity utilization rate, this paper provides a plausible explanation for simultaneous booms in current consumption, investment, output, and employment to match the empirical evidence under the news shock. |
| doi_str_mv | 10.1111/jmcb.12176 |
| format | Article |
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When such a channel is paired with investment adjustment costs and the endogenous capacity utilization rate, this paper provides a plausible explanation for simultaneous booms in current consumption, investment, output, and employment to match the empirical evidence under the news shock.</description><subject>Business cycles</subject><subject>Consumption</subject><subject>E20</subject><subject>E32</subject><subject>Employment</subject><subject>Inservice training</subject><subject>Investment</subject><subject>labor market frictions</subject><subject>Labor supply</subject><subject>Labour demand</subject><subject>Learning</subject><subject>news-driven business cycles</subject><subject>on-the-job learning</subject><subject>Productivity</subject><subject>Studies</subject><issn>0022-2879</issn><issn>1538-4616</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2015</creationdate><recordtype>article</recordtype><recordid>eNp90E1P20AQBuBVRaUGyqW_wBJCQpWW7uyn9wgp32k4QNXeVvZ6FhwcG3YTIP--Tg0V4tC5zOV5R6OXkC_A9qGfb7O5L_eBg9EfyAiUyKnUoDfIiDHOKc-N_UQ2U5oxxqySMCLisqWLW6TnXZlNsIht3d5kRVtlU3xK9HusH7HNDpepbjGlbLzyDabP5GMomoTbL3uL_Dw-uh6f0snlydn4YEK91FpTaUEUQTLwHI2whbfSg1a-DCXHygSFlVYyeFGKquQKURqEkFspKstDKMUW2Rvu3sfuYYlp4eZ18tg0RYvdMjnQRrPcGgU93XlHZ90ytv13awXMambW6uugfOxSihjcfaznRVw5YG7dn1v35_7212MY8FPd4Oo_0p3_GB--ZnaHzCwtuvg2wwUzjkvV985V7-jg6rTA53-uiHdOG2GU-zU9cTC9ujBX_LfLxR_xeIsg</recordid><startdate>201503</startdate><enddate>201503</enddate><creator>CHEN, KUAN-JEN</creator><creator>LAI, CHING-CHONG</creator><general>Blackwell Publishing Ltd</general><general>Wiley Subscription Services</general><general>Ohio State University Press</general><scope>BSCLL</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>201503</creationdate><title>On-the-Job Learning and News-Driven Business Cycles</title><author>CHEN, KUAN-JEN ; LAI, CHING-CHONG</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c4666-4913af401c2e739ac94c165cbfb2ed7f5ed654fc3b3db25ee47e1f8943d92ffb3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2015</creationdate><topic>Business cycles</topic><topic>Consumption</topic><topic>E20</topic><topic>E32</topic><topic>Employment</topic><topic>Inservice training</topic><topic>Investment</topic><topic>labor market frictions</topic><topic>Labor supply</topic><topic>Labour demand</topic><topic>Learning</topic><topic>news-driven business cycles</topic><topic>on-the-job learning</topic><topic>Productivity</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>CHEN, KUAN-JEN</creatorcontrib><creatorcontrib>LAI, CHING-CHONG</creatorcontrib><collection>Istex</collection><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of money, credit and banking</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>CHEN, KUAN-JEN</au><au>LAI, CHING-CHONG</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>On-the-Job Learning and News-Driven Business Cycles</atitle><jtitle>Journal of money, credit and banking</jtitle><addtitle>Journal of Money, Credit and Banking</addtitle><date>2015-03</date><risdate>2015</risdate><volume>47</volume><issue>2-3</issue><spage>261</spage><epage>294</epage><pages>261-294</pages><issn>0022-2879</issn><eissn>1538-4616</eissn><coden>JMCBBT</coden><abstract>This paper proposes a new channel of on-the-job learning to explain the positive comovement between consumption and employment following good news about future productivity. 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| ispartof | Journal of money, credit and banking, 2015-03, Vol.47 (2-3), p.261-294 |
| issn | 0022-2879 1538-4616 |
| language | eng |
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| source | Jstor Complete Legacy; Wiley Online Library eJournals |
| subjects | Business cycles Consumption E20 E32 Employment Inservice training Investment labor market frictions Labor supply Labour demand Learning news-driven business cycles on-the-job learning Productivity Studies |
| title | On-the-Job Learning and News-Driven Business Cycles |
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