The wage curve reloaded
By: by David G. Blanchflower, Andrew J. Oswald.
Contributors: Oswald, Andrew J.
Series: Discussion paper ;; no. 1665; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1665.
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Wages -- United States.; Unemployment -- United States.
Description: "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"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Includes bibliographical references.
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