Longhi, Simonetta; Nijkamp, Peter; Poot, Jacques - 2007
Most "wage curve" studies ignore the geography of local labor markets. However, when a local labor market is in close … proximity of other labor markets, a local shock that increases unemployment may not lead to lower pay rates if employers fear … labor market is. Wages are also expected to be higher in regions that interact strongly with other regions. These hypotheses …