The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Wage Curve

  • David G. Blanchflower
  • Andrew J. Oswald
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2544

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.

Keywords

Labour economics Microfoundations Phillips curve Phillips, A. W. Power laws Unemployment Wage curve 
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Notes

Acknowledgment

We thank Bruce Weinberg for helpful suggestions.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • David G. Blanchflower
    • 1
  • Andrew J. Oswald
    • 1
  1. 1.