Controlling for geographic dispersion when estimating the Japanese Phillips curve

Hiroshi Fujiki and Howard J. Wall ()

No 2006-057, Working Papers from Federal Reserve Bank of St. Louis

Abstract: This paper argues that estimation of the Phillips curve for Japan should take account of the geographic dispersion of labor-market conditions. We find evidence that the relationship between wage inflation and the unemployment rate is convex. With such convexity, wage inflation can occur when unemployment rates across regions become more disperse, even if the aggregate unemployment rate is unchanged. We show that controlling for the geographic dispersion of unemployment rates yields a flatter Phillips curve and a higher natural rate of unemployment.

Keywords: Phillips curve; Japan; Labor market (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-geo, nep-mac and nep-sea
Date: 2006
View list of references

Downloads: (external link)
http://research.stlouisfed.org/wp/2006/2006-057.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:fip:fedlwp:2006-057

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis
Contact information at EDIRC.
Series data maintained by Diane Rosenberger ().