Jüßen, Falko Bredemeier, Christian Winkler, Roland
Year of Publication:
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Labor Markets No. G06-V1
We document heterogeneity in occupational employment dynamics in response to government spending shocks. Employment rises most strongly in pink-collar occupations, while employment in blue-collar occupations is hardly affected. We develop a business-cycle model that explains the heterogeneous occupational employment dynamics as a consequence of differences in the short-run substitutability between labor and capital services across occupations.