An Introduction to the Wage Curve
AbstractThis paper documents a statistical regulatity or law. It shows that there exists a downward-sloping curve linking the level of a worker's pay to the unemployment rate in the worker's region. The same curve can be found in microeconomic data sets from sixteen countries. The existence of this curve raises doubts about conventional wisdom in labor economics, regional economics, and macroeconomics.
CitationBlanchflower, David G., and Andrew J. Oswald. 1995. "An Introduction to the Wage Curve." Journal of Economic Perspectives, 9 (3): 153-167. DOI: 10.1257/jep.9.3.153
- J31 Wage Level and Structure; Wage Differentials
- J64 Unemployment: Models, Duration, Incidence, and Job Search