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A benchmark for wage growth through the lens of the Beveridge curve

Florian Kajuth

Applied Economics Letters, 2018, vol. 25, issue 7, 487-492

Abstract: Using an estimated Beveridge curve, we trace out the vacancy–unemployment ratio in the steady state. This steady-state measure for labour market tightness is embedded in a VAR framework to obtain a benchmark for wage growth reflecting a labour market equilibrium.

Date: 2018
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Handle: RePEc:taf:apeclt:v:25:y:2018:i:7:p:487-492