A Cointegration Model for Search Equilibrium Wage Formation

Lourens Broersma, Frank A.G. den Butter and Udo Kock
Additional contact information
Lourens Broersma: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 21, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus value of a realized match. From this perspective, this paper presents an econometric analysis of the influence of labor market flows on wage formation as an alternative to the traditional specification of wage equations in which unemployment represents Phillips- curve or wage-curve effects. The paper estimates a dynamic wage equation for the Netherlands using a cointegration approach. It finds that labor flows, and notably flows from outside the labor market, are important determinants of both short-run and long-run wage setting

Keywords: wage curve; labor market flows; cointegration model (search for similar items in EconPapers)
JEL-codes: C51 J31 (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://degree.ubvu.vu.nl/repec/vua/wpaper/pdf/20030021.pdf (application/pdf)

Related works:
Journal Article: A cointegration model for search equilibrium wage formation (2006)
Working Paper: A Cointegration Model for Search Equilibrium Wage Formation (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vua:wpaper:2003-21

Access Statistics for this paper

More papers in Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics Contact information at EDIRC.
Bibliographic data for series maintained by R. Dam ().