From liberty street to main street: firms, monetary policy and labor market outcomes

Project Summary:

According to its mandate, the Federal Reserve is required to foster maximum employment. The central bank tries to do this by affecting aggregate demand by loosening or tightening the flow of credit. The distributional impact of these decisions is unclear when it comes to the labor market. This research assesses how changes in monetary policy affect the demand for different kinds of workers and redistribute labor income and represents an exciting extension of recent literature on firm effects.


Christina Patterson is a third year graduate student in economics at Massachusetts Institute of Technology with interests in empirical macroeconomics and labor and a research assistant with the MIT Initiative on the Digital Economy. Prior to coming to MIT, she worked in the research department at the Federal Reserve Bank of New York. She holds a B.A. from Columbia University, where she majored in economics and mathematics. Her research explores how individuals search for jobs during recessions, how workers select occupations, and how these individual decisions affect the aggregate labor market?s response to economic downturns.