Does the wage curve exist in Nigeria? Evidence from a disaggregated labour market

Taiwo Aderemi ()

Journal of Social and Economic Development, 2015, vol. 17, issue 2, 184-199

Abstract: This paper tests the wage curve, a negative relationship between local unemployment rates and real wages in Nigeria, in 2004 using a household survey data. Both the cell-mean and micro-data regressions estimates refute the wage curve hypothesis in Nigeria. Instead, the findings show a positive relationship between real wages and unemployment in Nigeria in the period observed. An intuition from this is that wages in the country are downward rigid to distortions in the labour market. The positive relationship between real wages and jobless rates could partly explain the rising income inequality pattern in the country. Copyright Institute for Social and Economic Change 2015

Keywords: Formal; Informal; Wage; Unemployment; Nigeria; J3; J31; J46 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:spr:jsecdv:v:17:y:2015:i:2:p:184-199

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DOI: 10.1007/s40847-015-0007-2

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