Abstract
This article summarizes evidence for the existence of a wage curve – a downward-sloping relationship between the level of pay and the local unemployment rate – in modern micro data. At the time of writing, the curve has been found in 40 nations. Its elasticity is approximately −0.1.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
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We thank Bruce Weinberg for helpful suggestions.
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Blanchflower, D.G., Oswald, A.J. (2008). Wage Curve. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_2544-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_2544-1
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