Age and Gender Group Differences in Employment Responses to Monetary Policy Shock in a Small Open Economy: The Case of Korea. Issue 2 (5th March 2017)

• Record Type: Journal Article
• Authors: Chung, Sungyup
• Is Part Of: Asia & the Pacific policy studies. Volume 4:Issue 2(2017)
• Page Start: 207
• Page End: 224
• Publication Date: 2017-03-05
• Subjects: employment -- monetary policy -- FAVAR -- small open economy -- IRF; Policy sciences -- Asia -- Periodicals; Policy sciences -- Pacific Area -- Periodicals; Policy sciences -- Australia -- Periodicals; Political planning -- Asia -- Periodicals; Political planning -- Pacific Area -- Periodicals; Political planning -- Australia -- Periodicals; 320.6095
• DOI: 10.1002/app5.169
• Languages: English
• ISSNs: 2050-2680

Abstract

Abstract: A Factor Augmented Vector Autoregressive model is constructed in a way that it resolves the price puzzle problem and separately identifies domestic and foreign monetary policy shocks by imposing a small‐open economy structure. An analysis on the employment data grouped by age and gender reveals that only the young male worker group exhibits an inverse relationship between employment and domestic policy rates. In the case of the foreign (the United States) policy rate rise, however, the negative response of employment could be observed for all of the worker groups.