Duffy, Fiona; Walsh, Patrick Paul - LICOS Centre for Institutions and Economic Performance, … - 2000
A simple model of wage setting and restructuring predicts that the average wage level in a regional labour market in … regional restructuring. As in Blanchflower and Oswald (1994), the estimated unemployment elasticity of pay across regions is … restructured regions are shown to receive higher premiums in pay indicating compensation for exposure to risk during restructuring. …