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Essays In Macroeconomic Policy, Meng-Ting Chen
Essays In Macroeconomic Policy, Meng-Ting Chen
Dissertations, Theses, and Capstone Projects
This dissertation consists of three chapters that cover topics on macroeconomic policies.
Chapter 1 - Markups, Labor Share, and Wage Dispersion.
Increasing market power has an impact on labor market behavior. This paper argues that the decline in the aggregate wage after 1980 comes from both increasing aggregate product markup and decreasing aggregate labor markdown. Most of the decline is driven by the sharp decline in lower wage percentiles, which also contributes to the increasing wage dispersion. Further, both firms’ monopoly and monopsony power play important roles in explaining the decline in the aggregate labor share. I build a heterogeneous …