EconPapers    
Economics at your fingertips  
 

Local and spatial cointegration in the wage curve – a spatial panel analysis for german regions

Reinhold Kosfeld () and Christian Dreger ()
Additional contact information
Reinhold Kosfeld: University of Kassel

Review of Regional Research: Jahrbuch für Regionalwissenschaft, 2018, vol. 38, issue 1, 53-75

Abstract: Abstract The wage curve introduced by Blanchflower and Oswald (1990, 1994b) postulates a negative correlation between wages and unemployment. Empirical studies use different channels for a theoretical underpinning the relationship. Panel data models mostly draw on bargaining power or the efficiency wage hypothesis. Spatial econometric approaches can be rationalized by monopsonistic competition. However, the approaches either ignore the issue of nonstationarity or treat the data as if it were nonspatial. In this paper, we adopt a global cointegration approach to account for nonstationarity of regional data. By specifying a spatial error correction model (SpECM), equilibrium adjustments are considered in both time and space. For West Germany, strong evidence for the existence of a long-run wage curve with spatial effects is found.

Keywords: Wage curve; Regional labour markets; Spatial panel models; Global cointegration analysis; Spatial error correction model; Lohnkurve; Regionale Arbeitsmärkte; Räumliche Panelmodelle; Globale Kointegrationsanalyse; Räumliches Fehlerkorrekturmodell (search for similar items in EconPapers)
JEL-codes: J30 J60 C33 R15 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10037-017-0113-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Local and Spatial Cointegration in the Wage Curve – A Spatial Panel Analysis for German Regions (2016) Downloads
Working Paper: Local and Spatial Cointegration in the Wage Curve: A Spatial Panel Analysis for German Regions (2015) Downloads
Working Paper: Local and Spatial Cointegration in the Wage Curve: A Spatial Panel Analysis for German Regions (2015) Downloads
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:spr:jahrfr:v:38:y:2018:i:1:d:10.1007_s10037-017-0113-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10037

Access Statistics for this article

Review of Regional Research: Jahrbuch für Regionalwissenschaft is currently edited by Thomas Brenner and Georg Hirte

More articles in Review of Regional Research: Jahrbuch für Regionalwissenschaft from Springer, Gesellschaft für Regionalforschung (GfR) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-10-18
Handle: RePEc:spr:jahrfr:v:38:y:2018:i:1:d:10.1007_s10037-017-0113-z