1. For a discussion of the relevant theoretical and empirical literature that shows the regular co-movements between labor and financial markets over the course of the business cycle, see Christian E. Weller and Jeffrey B. Wenger, “What Happens to Defined Contribution Accounts When Labor Markets and Financial Markets Move Together?” Journal of Aging & Social Policy 21, no. 3 (2009), 256–276, doi: 10.1080/08959420902733298.
2. Dean Baker, “The Run-up in Home Prices: A Bubble,” Challenge 45, no. 6 (2002): 293–319.
3. Dale L. Domian and David A. Louton, “Business Cycle Asymmetry and the Stock Market,” The Quarterly Review of Economics and Finance 35, no. 4 (Winter 1995): 451–466;
4. NBER Working Paper No. w13428;EE Leamer,2007
5. It may also be possible that employers may cut on their contributions to their employee retirement savings plans when the economy enters a recession. For instance, the following finds that employer contributions fell during the 2001 recession. Alicia Munnell and Annika Sunden, Coming Up Short: The Challenges of 401(k) Plans (Washington, DC: Brookings Institution Press, 2004).