On the negative relationship between the wage rate and the unemployment rate: application of efficiency wage models

Applying efficiency wage models, this article finds that there is a strong evidence of a negative wage curve for the state of Alabama. The elasticity of the wage curve is estimated to be -0.28, suggesting that the wage rate in Alabama is much more sensitive to a change in the unemployment rate than the USA and there exist segmented labour markets. The log-linear function performs slightly better than the semi-log function.

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Year of publication:	2009
Authors:	Hsing, Yu
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 16.2009, 6, p. 645-647
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004992220