Essays on the Macroeconomic Consequences of Microeconomic Frictions

Abstract

This thesis explores the macroeconomic implications of micro-level frictions. The first chapter explores whether persistent productivity differences at the micro-level should be understood as a result of a friction in technology choice, and quantifies the efficiency losses in the economy. The second chapter empirically assess through which channels - factor adjustment costs, price rigidities, or financial frictions - do uncertainty shocks affect employment dynamics. The third chapter quantifies trends in labor income risk and study its implications for welfare and inequality in the context of a model where workers face search frictions to find jobs.