Monetary policy and the dynamics of wage inequality: evidence from Spanish administrative data

with: Giacomo Rella

Abstract

The paper aims to evaluate the effects of monetary policies on labor market outcomes. Particualrly, we focus on understanding whether monetary policy leads to differentials wage effects along the earnings distributions and how these differences might be explained by heterogeneities in reallocation mechanisms i.e., moving from employment to unemployment (and viceversa), changes in working times, types of contracts, or changing sectors of employment. By using Spanish administrative data, we apply standard local projections to explore the dynamics of monetary policy contractions on interested outcomes.