Claudio Michelacci

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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)
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, low(More)
Do households bene…t from expansionary monetary policy? We investigate how indebted households' consumption and saving decisions are a¤ected 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 …ve years. The monthly(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)
We setup a real business cycle model with search and matching frictions driven by several shocks, which nests full Nash Bargaining and wage rigidity as special cases and includes other transmission mechanisms suggested by the literature for the propagation and amplification of disturbances. The model is estimated using full information methods for two(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)
We analyze the labor market effects of neutral and investment-specific technology shocks along the intensive margin (hours worked) and the extensive margin (unemployment). We characterize the dynamic response of unemployment in terms of the job separation and the job finding rate. We find that the job separation rate accounts for a major portion of the(More)
We document that the fraction of entrepreneurs who work in the region where they were born is signi…cantly higher than the corresponding fraction for dependent workers. This di¤erence is more pronounced in more developed regions and positively related to the degree of local …nancial development. Firms created by locals are more valuable and bigger (in terms(More)
We claim that the stock market encourages business creation, innovation, and growth by allowing the recycling of " informed capital ". Due to incentive and information problems, start-ups face larger costs of going public than mature …rms. Sustaining a tight relationship with a monitor (bank, venture capitalist) allows them to …nance their operations(More)
Neal for many helpful discussions. Financial support from the NSF (award # SES-05-32398) is gratefully acknowledged. Errors are ours. Abstract 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(More)