Automatic Data Processing
Institutional Affiliation: Automatic Data Processing
NBER Working Papers and Publications
|May 2020||The U.S. Labor Market during the Beginning of the Pandemic Recession|
with Tomaz Cajner, Leland D. Crane, Ryan A. Decker, John Grigsby, Adrian Hamins-Puertolas, Erik Hurst, Christopher Kurz: w27159
Using weekly, anonymized administrative payroll data from the largest U.S. payroll processing company, we measure the evolution of the U.S. labor market during the first three months of the global COVID-19 pandemic. After aggregate employment fell by 21 percent through late-April, we highlight a modest employment rebound through late-May. The re-opening of temporarily shuttered businesses contributed significantly to the employment rebound, particularly for smaller businesses. We show that worker recall has been an important component of recent employment gains for both re-opening and continuing businesses. Employment losses have been concentrated disproportionately among lower wage workers; as of late May employment for workers in the lowest wage quintile was still 30 percent lower relati...
|March 2019||Aggregate Nominal Wage Adjustments: New Evidence from Administrative Payroll Data|
with John Grigsby, Erik Hurst: w25628
Using administrative payroll data from the largest U.S. payroll processing company, we document a series of new facts about nominal wage adjustments in the United States. The data allow us to define a worker's per-period base contract wage separately from other forms of compensation such as bonuses. We provide evidence that the extent to which base wages adjust is likely the appropriate concept of wage stickiness in many macro models. Nominal base wage declines are much rarer than previously thought with only 2% of job-stayers receiving a nominal base wage cut during a given year. However, accounting for shifts in nominal base wages of job-changers implies that aggregate nominal wages are more flexible than the nominal wages of job-stayers. In addition, we provide evidence that the flexibi...