wage curve

Author
Abstract

In The Wage Qurve, David G. Blanchflower and Andrew J. Oswald argue that there is
a fundamental negative relation between wages and the unemployment rate in a worker’s local
labor market. Blanchflower and Oswald use large-scale micro data sets to estimate this relation
for the United States, Britain, and 10 other countries. I review their empirical methods and
findings, and provide some further evidence on the nature of the wage curve relationship in the
United States. I conclude that there is a strong statistical correlation between rates of pay and
local unemployment, although the interpretation of this correlation remains unresolved.

Year of Publication
1995
Number
343
Date Published
02/1995
Publication Language
eng
Citation Key
Journal of Economic Literature, Vol 33, June 1995
Card, D. (1995). The Wage Curve: A Review. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01pn89d659s (Original work published February 1995)
Working Papers