Labour
Fed leaves door open for rate hike
FOMC statement offers hints that the US labour market is reaching a position where a hike could be possible, indicating interest rates are still expected to rise this year
BoJ’s Nakaso highlights changing behaviour of firms
Firms are increasingly investing and facing tighter labour market conditions, with record profits and higher wages providing a boost to the economy, but inflation is still stuck low
Chinese outward direct investment: overtaking other EMEs
With China’s labour costs rising rapidly, enterprises are facing pressure to seek out low-cost locations – they either have to move westwards seek new opportunities in the global economy
Chilean paper analyses ‘labour wedge’ cycles
The gap between the marginal rate of substitution (MRS) and the marginal productivity of labour (MPL) increases during recessions and is counter-cyclical in Chile, finds research
Barbadian governor in rallying cry on productivity
DeLisle Worrell calls on workers to “contribute more” to the production of goods and services in the Caribbean country; sees lack of engagement as a key challenge
BoE officials defend use of labour market data in policy-making
Mark Carney and other top officials say labour market data quality is variable but always carefully examined; central bank may publish details of agents’ assessment of the economy
BoE paper tests optimal policy when workers lose skills
Working paper asks how optimal monetary policy is affected by ‘human capital depreciation’; finds strict inflation targeting can be improved upon
PBoC chief economist sees ‘very low’ risk of hard landing
Ma Jun argues slowdown in investment will be offset by services and health care spending; describes Hong Kong-Shanghai ‘stock connect' programme as 'major breakthrough'
BoJ paper studies factors holding workers back from switching industries
Researchers find that differences in required tasks aggravate earnings gaps and encourage workers not to move, creating frictions in the Japanese labour market
Korea needs more women and young people in work, paper finds
Labour market ‘duality' and low youth and female employment are holding back growth, according to paper written by Bank of Korea and IMF economists
New York Fed study finds Puerto Rico emigration has not led to 'brain drain'
Island's population has been falling for a decade due to emigration, but share of college graduates has increased as low-skilled workers are leaving in greater numbers
Redistribution can boost demand but cut output, warns Fed working paper
Richmond Fed working paper points out that although taking from the rich to give to the poor can boost aggregate demand, it may also disincentivise work
Policy must do more to get women and low-skilled into work, paper finds
Slovak economists analyse the elasticity of labour supply and find that changes in the tax and benefits system could entice women in particular into the workforce
Fed's Bullard wants more research into what drives labour market participation
St Louis Fed president concludes the existing literature suggests demographics are behind most of the decline in participation, but calls for more detailed work on household participation decisions
San Fran economists suggest labour market leading indicators
Economists identify the six best indicators for assessing the degree to which labour market conditions are improving; find the existing rate of recovery will continue ‘if not accelerate’ in coming months
Financial crisis caused significant shift in the euro area Beveridge curve
ECB paper finds that labour market consequences of the crisis have been heterogeneous across countries, with Spain and Germany diverging the most
Bank of Israel’s outgoing chief, Stanley Fischer, on the challenges of central banking
Stanley Fischer believes his work as governor of the Bank of Israel is done. He tells Chris Jeffery about the reform process in Israel as well as the challenges facing the world economy and the IMF
Fed paper investigates decline in US labour market mobility
Study identifies drop in interstate migration since 1980s; attributes fall to stronger internal labour markets rather than demographic or sociological factors
Mexican deputy targets productivity obstacles
Bank of Mexico’s Manuel Sánchez attributes low GDP per capita to ‘stagnant’ productivity; urges structural reform
Finland paper recommends ‘unpleasant reforms’
Research published by the Bank of Finland advocates slowing public sector growth and lowering taxes; will boost labour supply and competition
Sarb deputy says domestic woes are impacting growth
South African Reserve Bank deputy governor says domestic issues, including labour strikes, are dictating price and exchange rate concerns; growth rate likely to need downward revision
National Bank of Hungary paper surveys wage rigidities
Paper presents findings of large European survey conducted by central banks; finds wages are more rigid than prices, but various factors determine the frequency of adjustment
Kansas Fed Economic Review discusses barriers to mobile payments in US
Kansas Fed’s latest economic review discusses supply- and demand-side issues limiting the use of mobile payments in the US
Curaçao and Sint Maarten governor discusses benefits of more women in labour force
Greater female participation in labour market key to meeting demographic challenges of the future, says Emsley Tromp