The Real Wage-Employment Relationship in the United States

Stephen Nickell and James Symons

Journal of Labor Economics, 1990, vol. 8, issue 1, 1-15

Abstract: The article examines the real wage-employment relationship in the United States in the light of the diversity of results in the literature. It demonstrates that, when the relationship is correctly specified in the sense that due allowance is made for technical progress and capital accumulation, and the appropriate value-added deflator is used for the wage, then a negative relationship may be observed in the data. An incorrect specification, however, is as likely to lead to a positive relationship as a negative one. Copyright 1990 by University of Chicago Press.

Date: 1990
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