Claudio Michelacci

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Social contacts help workers to ...nd jobs, but those jobs need not be in the occupations where workers are most productive. Hence social contacts can generate mismatch between a worker’s occupational choice and his comparative productive advantage. Thus economies with dense social networks can exhibit apparently low labor force quality and, as a result,(More)
Do households benefit from expansionary monetary policy? We investigate how indebted households’consumption and saving decisions are affected by anticipated changes in monthly interest payments. We focus on borrowers with adjustable rate mortgages originated between 2005 and 2007 featuring an automatic reset of the interest rate after five years. The(More)
We evaluate the allocation of risk between firms and their workers using matched employer-employee panel data. Unlike previous contributions, this paper focuses on idiosyncratic shocks to the firm, which are the correct empirical counterpart of the theoretical notion of diversifiable risk. We allow for both temporary and permanent shocks to output and find(More)
We study a labour market equilibrium model in which firms sign optimal long-term contracts with workers. Firms that are financially constrained offer an increasing wage profile: they pay lower wages today in exchange for higher future wages once they become unconstrained. Because constrained firms grow faster, the model predicts a positive correlation(More)
We decompose the low-frequency movements in labour productivity into an investment-neutral and investment-speci...c technology component. We show that neutral technology shocks cause an increase in job creation and job destruction and leads to a reduction in aggregate employment. Investment-speci...c technology shocks reduce job destruction, have mild(More)
We analyze the effects of neutral and investment-specific technology shocks on hours and output. Long cycles in hours are captured in a variety of ways. Hours robustly fall in response to neutral shocks and robustly increase in response to investment specific shocks. The percentage of the variance of hours (output) explained by neutral shocks is small(More)
It has been widely argued that innovations in birth control technology during the last decades have affected not only women’s fertility choices, but generally their position in families and society. We analyze, from a theoretical perspective, the impact of these innovations on the intrahousehold allocation of resources. We consider a model of frictionless(More)
We consider a directed search model in which workers differ in productivity. Productivity becomes observable to firms after assessing their workers on the job, but it is not verifiable. Firms with vacancies choose between posting a noncontingent wage and leaving wages subject to bargaining with the worker. Under wage bargaining, firms cannot optimize the(More)