•  J. Jerónimo, A. Azevedo, P.C. Neves, M. Thompson, Interactions between financial constraints
and economic growth, The North American Journal of Economics and Finance, Volume 67, 2023, https://doi.org/10.1016/j.najef.2023.101943;

    • Abstract: The financial economy and the real economy are interconnected through various, complex, and evolving transmission mechanisms, whose literary coverage is far from comprehensive. In this context, we wish to contribute to the literature on the interactions between financial constraints and economic growth. We introduce financial dynamics in the R&D-based growth literature, by bringing Bernanke, Gertler and Gilchrist’s (1999) informational asymmetries into Romer’s (1990) growth model. With the developed framework, our main goal is to examine if and how such asymmetries impact economic growth. We find that the overall impact of this form of financial constraints on long-term growth is negative.

Work in progress:

  • Jerónimo, João (2022). Cyclicality of Wage elasticity of labour supply.

    • Abstract: We use matched employer-employee portuguese data to assess how the wage-elasticity of labour supply varies over the business cycle. The results suggest that employers’ wage setting power varies procyclically, and that firms have more power during economic downturns, which corroborates previous results with german data Hirsch, Jahn and Schnabel (2017).

  • Jerónimo, João (2024). Cyclical productivity pass-through for new hires and incumbents.

    • Abstract: What happens to wages over the business cycle? Following Pissarides (2009), we seek to understand the determinants of the differences in the cyclical wage volatility for these two groups of workers. Specifically, we seek to understand whether there is proof of differential pass-through from firm-level productivity to wages for incumbents and new hires over the business cycle. Overall, we can see that when unemployment rises by one percentage point, log hourly wages decrease by 2.46%,

      on average. From our AKM decomposition, we can see that the worker premium contributes the most for the cyclicality of this measure, by explaining around 58.29% of the cyclical effect.

  • Jerónimo, João (2024). Inter-industry wage premiums and wage floors.

    • Abstract: The question of why are similar workers paid different wages is a classic in labour economics, and has motivated a vast literature that goes back more than 50 years. It is a known fact that wages vary across firms and sectors. To some extent, the debate regarding firm wage setting power has been settled with Abowd, Kramarz and Margolis (1999) who have provided a methodological framework to study wage determination that is widely used in the literature, which consistently shows that firm fixed effects explain a significant portion of observed variance in individual earnings. However, there is substantially less work done on industry-specific wage premiums. In this paper, we apply the methodology developed in Card et al (2023) to Portuguese matched employer-employee data to study inter-industry wage premiums. We assess their relation to known labour market institutions in Portugal.