Longhi, Simonetta; Nijkamp, Peter; Poot, Jacques - 2004
Most "wage curve" studies treat local labour markets as independent "islands" in the national economy. However, when a … local labour market is in close proximity of other labour markets, a local shock that increases unemployment may not lead to … greater, the more isolated the local labour market is. Wages are also expected to be higher in regions that interact strongly …