Job Competition and the Wage Curve

Simonetta Longhi

No 4777, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The wage curve literature consistently finds a negative relationship between regional unemployment rates and regional wages; the most widely accepted theoretical explanations interpret the unemployment rate as a measure of job competition. This paper proposes new ways of measuring job competition, alternative to the unemployment rate, and finds that the negative relationship still holds when job competition is measured following the job search literature. While for men the wage impact of the theoretically-based measures of job competition is rather similar to the wage impact of the unemployment rate, for women the difference is substantial.

Keywords: on-the-job search; unemployment; wage curve (search for similar items in EconPapers)
JEL-codes: J31 R23 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010-02
New Economics Papers: this item is included in nep-geo and nep-lab
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Published - published in: Regional Studies, 2012, 46 (5), 611-620

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Related works:
Journal Article: Job Competition and the Wage Curve (2012)
Working Paper: Job competition and the wage curve (2007)
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