THE WAGE CURVE RECONSIDERED: IS IT TRULY AN 'EMPIRICAL LAW OF ECONOMICS'?

The negative relationship between wages and unemployment, embodied within the so-called wage curve, has an extensive literature and has been referred to as ‘an empirical law of economics’. However there are newer alternative theories that seek to explain the variation in wages without reference to unemployment rates, namely Urban Economics (UE) and New Economic Geography (NEG). The present paper considers the relative success of non-nested models of wage determination from the perspective of Great Britain’s 408 local authorities over the period 1998-2010.

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Year of publication:	2013
Authors:	FINGLETON, Bernard ; PALOMBI, Silvia
Published in:	Region et Developpement. - Laboratoire d'Économie Appliquée au Développement (LEAD), ISSN 1267-5059. - Vol. 38.2013, p. 49-92
Publisher:	Laboratoire d'Économie Appliquée au Développement (LEAD)
Subject:	WAGE CURVE \| EMPLOYMENT DENSITY \| MARKET POTENTIAL \| SPATIAL PANEL DATA ECONOMETRICS \| NON-NESTED MODELS \| SPATIAL J-TEST

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Extent:	application/pdf
Type of publication:	Article
Classification:	C23 - Models with Panel Data ; C52 - Model Evaluation and Testing ; J30 - Wages, Compensation, and Labor Costs. General ; J40 - Particular Labor Markets. General ; J63 - Turnover; Vacancies; Layoffs ; O18 - Regional, Urban, and Rural Analyses ; R11 - Regional Economic Activity: Growth, Development, and Changes ; R12 - Size and Spatial Distributions of Regional Economic Activity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010883864