Seminar Series “Macroeconomics and Labor Markets” on 24 June 2025
We are pleased to invite you to the seminar series on “Macroeconomics and Labor Markets“ organized by the Chair of Macroeconomics at the Friedrich-Alexander University Erlangen-Nuremberg, Prof. Merkl, the Chair of Global Governance and International Trade at the Friedrich-Alexander University Erlangen-Nuremberg, Prof. Moser, and the Competence Field Macroeconomics of the Institute for Employment Research (IAB). Researchers of both institutions, as well as national and international guests, present their current work at the intersection of labor- and macroeconomics.
The next seminar will be held on Tuesday, June 24, 12 noon to 1.30 PM (German time).
It will take place in person at the IAB, room Re100 E10 (Regensburger Strasse 104, Nürnberg).
Online participation will be possible via Skype for Business.
Almut Balleer (RWI Essen and TU Dortmund) will talk about “Monetary policy, the bank-lending channel and labor market adjustment of firms“.
Abstract:
This paper studies the real effects of monetary policy on firms’ labor adjustment. Using detailed bank data together with administrative firm and worker data for Germany, we find that firms reduce employment in response to contractionary monetary policy. We show that this employment reduction results from a relative decline in inflows rather than outflows. Inflows fall in particular for low-wage workers, whereas firms retain high-wage workers. Outflows for transitions to unemployment increase, while employment-to-employment outflows falls. We interpret this as evidence for labor hoarding. Using variation in the bank exposure to monetary policy, we show that these results are driven by the exposure of the firm to the bank-lending channel.