Permanent Differences in Unemployment and Permanent Wage Differentials

James Adams

The Quarterly Journal of Economics, 1985, vol. 100, issue 1, 29-56

Abstract: This paper tests for the existence of wage premiums based on geographic and industry unemployment differences. These differences are broken down into permanent and transitory components in equations controlling for variation in state generosity of unemployment insurance benefits. Findings indicate that wage premiums arise for long-run unemployment differences, but that negative short-run shocks to industries generate wage cuts, while positive shocks generate wage hikes. Therefore, labor contracts accommodate long-term anticipated unemployment, and entail sharing of short-term unemployment risks.

Date: 1985
References: Add references at CitEc
Citations: View citations in EconPapers (40)

Downloads: (external link)
http://hdl.handle.net/10.2307/1885734 (application/pdf)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:oup:qjecon:v:100:y:1985:i:1:p:29-56.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().