02170cas a2200337 a 4500 AALejournalIMF023246 230101c9999 xx r poo 0 0eng d 9798400211812 20.00 USD 1018-5941 BD-DhAAL BD-DhAAL Burya, Anastasia. Monetary Policy Under Labor Market Power / Anastasia Burya, Rui Mano, Yannick Timmer, Anke Weber. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using the near universe of online vacancy postings in the U.S., we study the interaction between labor market power and monetary policy. We show empirically that labor market power amplifies the labor demand effects of monetary policy, while not disproportionately affecting wage growth. A search and matching model in which firms can attract workers by either offering higher wages or posting more vacancies can rationalize these findings. We also find that vacancy postings that do not require a college degree or technology skills are more responsive to monetary policy, especially when firms have labor market power. Our results help explain the "wageless" recovery after the 2008 financial crisis and the flattening of the wage Phillips curve, especially for the low-skilled, who saw stagnant wages but a robust decline in unemployment. Mode of access: Internet Employment imf Interest Rates imf Labor Demand imf Monetary Policy imf Unemployment imf Mano, Rui. Timmer, Yannick. Weber, Anke. IMF Working Papers; Working Paper ; No. 2022/128 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=128 IMF e-Library