THE WAGE CURVE RECONSIDERED: IS IT TRULY AN 'EMPIRICAL LAW OF ECONOMICS'?

Bernard Fingleton () and Silvia Palombi ()
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Silvia Palombi: Department of Economics, University of Strathclyde

Region et Developpement, 2013, vol. 38, 49-92

Abstract: The negative relationship between wages and unemployment, embodied within the so-called wage curve, has an extensive literature and has been referred to as ‘an empirical law of economics’. However there are newer alternative theories that seek to explain the variation in wages without reference to unemployment rates, namely Urban Economics (UE) and New Economic Geography (NEG). The present paper considers the relative success of non-nested models of wage determination from the perspective of Great Britain’s 408 local authorities over the period 1998-2010.

Keywords: WAGE CURVE; EMPLOYMENT DENSITY; MARKET POTENTIAL; SPATIAL PANEL DATA ECONOMETRICS; NON-NESTED MODELS; SPATIAL J-TEST (search for similar items in EconPapers)
JEL-codes: C23 C52 J30 J40 J63 O18 R11 R12 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:tou:journl:v:38:y:2013:p:49-92

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