https://macropaperwarehouse.com/authors/cynthia-l-doniger/Cynthia L DonigerHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/education-and-the-margins-of-cyclical-adjustment-in-the-labour-market/https://macropaperwarehouse.com/papers/education-and-the-margins-of-cyclical-adjustment-in-the-labour-market/<p><strong>Research question.</strong> This paper asks how the cyclical sensitivity of wages varies with workers&rsquo; educational attainment, what mechanisms drive the differences, and what the welfare consequences are of ignoring this heterogeneity. The starting point is a well-known asymmetry: less-educated workers have much higher and more volatile job separation rates, yet the standard macroeconomic literature has treated wages as roughly acyclical for a representative worker. Doniger asks whether this employment-centric picture is incomplete—and finds that it is, in a direction opposite to what the employment pattern would suggest.</p>