Revisiting the Relationship Between Unemployment and Wages

Joao Alfredo Galindo da Fonseca (), Giovanni Gallipoli () and Yaniv Yedid-Levi
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Joao Alfredo Galindo da Fonseca: University of British Columbia, Vancouver School of Economics

No 2016-001, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: We revisit the empirical relationship between wages and labor market conditions. Following work histories in the NLSY79 we document that the relationship between wages and unemployment rate differs across occupations. The results hold after controlling for unobserved match quality. This suggests that evidence about history-dependence of wages obtained from pooled samples conceals significant differences and may provide an imprecise description of earning dynamics. Similar discrepancies emerge when we group workers by education. Sensitivity of wages to unemployment appears related to whether total remuneration entails performance pay components.

Keywords: wages; unemployment; occupation (search for similar items in EconPapers)
JEL-codes: E30 J30 J60 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-lma, nep-ltv and nep-mac
Note: M
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Citations: View citations in EconPapers (3)

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http://humcap.uchicago.edu/RePEc/hka/wpaper/Fonsec ... _2016_revisiting.pdf First version, January, 2016 (application/pdf)

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Working Paper: Revisiting the Relationship Between Unemployment and Wages (2016)
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