The Effect of Skill shortages on Unemployment and Real Wage Growth: A Simultaneous Equation Approach
Gavin Wallis ()
No 217, Royal Economic Society Annual Conference 2003 from Royal Economic Society
This paper attempts to quantify the effect of skill shortages on the UK labour market by developing a simultaneous equation model of unemployment and real wage growth. The model is developed following a structural approach based on a priori economic information and is initially estimated using a two-stage least squares procedure. The model is also estimated using Zellner's seemingly unrelated regressions estimation technique, with similar results. It is shown that skill shortages have a positive effect on real wage growth and a negative effect on unemployment, with both these effects economically and statistically significant.
Keywords: skill shortages; unemployment; wages; 2SLS (search for similar items in EconPapers)
JEL-codes: C32 C51 C52 E24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://repec.org/res2003/Wallis.pdf full text
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ecj:ac2003:217
Access Statistics for this paper
More papers in Royal Economic Society Annual Conference 2003 from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().