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The wage curve reloaded

Author: David Blanchflower; Andrew J Oswald; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2005.
Series: Working paper series (National Bureau of Economic Research), no. 11338.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
"This paper provides evidence for the existence of a wage curve -- a micro-econometric association between the level of pay and the local unemployment rate -- in modern U.S. data. Consistent with recent evidence from more than 40 other countries, the wage curve in the United States has a long-run elasticity of approximately -0.1. In line with the paper's theoretical framework: (i) wages are higher in states with  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: David Blanchflower; Andrew J Oswald; National Bureau of Economic Research.
OCLC Number: 60375823
Notes: May 2005.
Title from first page of PDF document.
Description: 1 online resource (44 pages).
Series Title: Working paper series (National Bureau of Economic Research), no. 11338.
Responsibility: David G. Blanchflower, Andrew J. Oswald.

Abstract:

"This paper provides evidence for the existence of a wage curve -- a micro-econometric association between the level of pay and the local unemployment rate -- in modern U.S. data. Consistent with recent evidence from more than 40 other countries, the wage curve in the United States has a long-run elasticity of approximately -0.1. In line with the paper's theoretical framework: (i) wages are higher in states with more generous unemployment benefits, (ii) the perceived probability of job-finding is lower in states with higher unemployment, and (iii) employees are less happy in states that have higher unemployment. We conclude that it is reasonable to view the wage curve as an empirical law of economics"--NBER website.

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