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From Phillips curve to wage curve

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Summary

In most traditional macroeconomic models for The Netherlands the wage equation is specified by a Phillips curve, in which wage growth is negatively related to the unemployment rate. This paper shows, however, that wage formation can better be described by the so-called wage curve, in which the wage level, instead of wage growth, depends negatively on the unemployment rate.

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Authors and Affiliations

  1. Central Planning Bureau, The Hague, The Netherlands

    J. J. Graafland

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  1. J. J. Graafland
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The author thanks S.K. Kuipers and D.A.G. Draper and other colleagues of the Central Planning Bureau for their useful comments.

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Graafland, J.J. From Phillips curve to wage curve. De Economist 140, 501–514 (1992). https://doi.org/10.1007/BF01725242

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