The Cost of Job Loss and the "New" Phillips Curve
Peter Matthews () and
Eastern Economic Journal, 2002, vol. 28, issue 2, 181-202
Economists have two standard explanations for the absence of substantial nominal wage pressures in the current macroeconomic climate. The first, and more traditional, view asserts that the NAIRU has drifted downward over the last decade, while the second posits the establishment of a "new paradigm." In this paper, we describe and evaluate a third, and perhaps simpler, explanation--that a stable Phillips-consistent relationship still exists for a different measure of labor market slack, the normalized cost of job loss.
Keywords: Macroeconomics; NAIRU; Phillips Curve; Wage (search for similar items in EconPapers)
JEL-codes: E24 E31 E27 E37 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:28:y:2002:i:2:p:181-202
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