A dynamic spatial panel data approach to the German wage curve

Badi Baltagi, Uwe Blien () and Katja Wolf

Economic Modelling, 2012, vol. 29, issue 1, 12-21

Abstract: A wage curve is a decreasing function of wages on the regional unemployment rate. Most empirical studies on the wage curve ignore possible spatial interaction effects between the regions which are the primary units of research. This paper reconsiders the western German wage curve with a special focus on the geography of labour markets. Spillovers between regions are taken into account. The paper tests whether the unemployment rate in the larger surrounding region also affects wages. In addition, agglomeration effects and effects of local monopsony are assessed.

Keywords: Wage curve; Regional labour markets; Spatial panel (search for similar items in EconPapers)
JEL-codes: C23 J30 R10 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (39)

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Related works:
Working Paper: A Dynamic Spatial Panel Data Approach to the German Wave Curve (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:1:p:12-21

DOI: 10.1016/j.econmod.2010.08.019

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