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Spatial Heterogeneity And The Wage Curve Revisited

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Author Info
Simonetta Longhi
Peter Nijkamp
Jacques Poot

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Abstract

Most "wage curve" studies ignore the geography of local labor markets. However, when a local labor market is in close proximity of other labor markets, a local shock that increases unemployment may not lead to lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be greater, the more isolated the local labor market is. Wages are also expected to be higher in regions that interact strongly with other regions. These hypotheses are confirmed by means of an estimation of wage curves with data for 327 regions of western Germany over the period 1990-1997. Copyright Blackwell Publishing, Inc. 2006

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9787.2006.00474.x
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Article provided by Blackwell Publishing in its journal Journal of Regional Science.

Volume (Year): 46 (2006)
Issue (Month): 4 ()
Pages: 707-731
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Handle: RePEc:bla:jregsc:v:46:y:2006:i:4:p:707-731

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Marisa Bucheli & Cecilia González, 2007. "An estimation of the wage curve for Uruguay," Documentos de Trabajo (working papers) 1107, Department of Economics - dECON. [Downloadable!]
  2. repec:ese:iserwp: is not listed on IDEAS
  3. Anna Iara & Iulia Traistaru, 2004. "How Flexible are Wages in EU Accession Countries?," ERSA conference papers ersa04p191, European Regional Science Association. [Downloadable!]
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  4. Jacques Poot & Bill Cochrane & Sandra Baxendine, 2005. "Description and Spatial Analysis of Employment Change in New Zealand Regions 1986-2001," Population Studies Centre Discussion Papers dp-57, University of Waikato, Population Studies Centre. [Downloadable!]
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