Volatility, Labor Heterogeneity And Asset Prices

Description: Please refer to the section BELOW (and NOT ABOVE) this line for the product details - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Title:Volatility, Labor Heterogeneity And Asset PricesISBN13:9781503287129ISBN10:1503287122Author:Federal Reserve Board (Author)Description:This Study Shows That A Firm's Reliance On Skilled Labor Is An Underlying Determinant Of Its Exposure To Aggregate Volatility Risk I Present A Model In Which Firms Make Hiring And Firing Decisions In An Environment Of Time-Varying Aggregate Volatility, And Face Linear Adjustment Costs That Increase With The Skill Of A Worker In The Model, An Increase In Aggregate Volatility Slows A Firm's Labor Demand Reaction To Changes In Economic Conditions, Reducing Its Ability To Smooth Cash Flows The Rise In Aggregate Volatility Has A More Pronounced Impact On Firms With A High Share Of Skilled Labor Because Their Labor Is More Costly To Adjust Therefore, The Compensation For Volatility Risk And Its Contribution To Risk Compensation Increases With A Firm's Reliance On Skilled Labor I Empirically Test The Implications Of The Model Using Occupational Estimates To Construct A Measure Of A Firm's Reliance On Skilled Labor, And Find A Positive And Statistically Significant Cross-Sectional Relation Between The Reliance On Skilled Labor And Expected Returns In Times Of High Aggregate Volatility, Firms With A High Share Of Skilled Workers Earn An Annual Return Of 2 7% Above Those With A High Share Of Unskilled Workers This Spread Reduces By One Third In Times When Volatility Is Back To Normal Binding:Paperback, PaperbackPublisher:CREATESPACEPublication Date:2014-11-19Weight:0.31 lbsDimensions:0.1'' H x 11'' L x 8.5'' WNumber of Pages:50Language:English

Price: 14.65 USD

Location: USA

End Time: 2024-09-02T20:23:34.000Z

Shipping Cost: 0 USD