Cyclical underemployment: Causes and consequences of inequality

Grant description:

This project links traditional macroeconomic models with labor models, specifically through the incorporation of the job ladder. The goal is lofty: to construct a comprehensive measure of underemployment and integrate it into commonly-used economic models, thereby providing evidence about the effects of underemployment on labor market functionality over the business cycle and on inequality more broadly. We view this project as a significant academic contribution with immediate policy relevance given the emerging debates over appropriate responses to the next recession.