Full Citation

Title: Is there a Wage Curve with Regional Real Wages?

Citation Type: Working Paper

Publication Year: 2020

ISBN:

ISSN: 2195-2663

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Abstract: Do wages react to regional unemployment, as proposed by the theory behind the regional wage curve, if regional price differences are taken into account? This paper applies regional price indexes to assess the wage curve, whereas in the literature only nominal wages are used for wage curve regressions. In order to test the impact of regional prices on the wage curve we apply a variety of methodological approaches. With individual data from the US Census and the Polish Labor Force Survey we find a wage curve. However, in both countries, the local unemployment elasticity and spatial spillovers decrease significantly once regional price deflators are applied.

Url: http://doku.iab.de/discussionpapers/2020/dp1720.pdf

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Authors: Rokicki, Bartlomiej; Blien, Uwe; Hewings, Geoffrey J D; Van, Phan thi Hong

Series Title: IAB Discussion paper

Publication Number: 17/2020

Institution: Institute for Employment Research

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Publisher Location:

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Other

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