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Earning Curves and Wage Curves

Author

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  • Angela J. Black
  • Felix R. FitzRoy

Abstract

Using British county data for full‐time male manual workers we extend earlier work to investigate wage and earning curves. We distinguish between total earnings and hourly wages for standard hours, uncontaminated by overtime premium. Using data from 1980–1995 we find that earnings behaviour is dominated by volatile hours in the short run, while wage growth is highly sensitive to the level of unemployment as in the classical Phillips curve with macro data. Macro evidence for sticky wages is thus confirmed at the local level, and the wage curve of rapid adjustment is rejected for normal hourly wages.

Suggested Citation

  • Angela J. Black & Felix R. FitzRoy, 2000. "Earning Curves and Wage Curves," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(5), pages 471-486, November.
    • Handle: RePEc:bla:scotjp:v:47:y:2000:i:5:p:471-486
    DOI: 10.1111/1467-9485.00174
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    Cited by:

    1. Andre G Ross & Grant Allan & Gioele Figus & Peter McGregor & J Kim Swales & Karen Turner, 2018. "The economic impacts of UK trade-enhancing industrial policies and their spillover effects on the energy system," Working Papers 1810, University of Strathclyde Business School, Department of Economics.
    2. Grant Allan & Christos Barkoumas & Andrew Ross & Ashank Sinha, 2020. "Success in sectoral export promotion and economic and environmental indicators: a multisectoral modelling analysis for the UK," Working Papers 2008, University of Strathclyde Business School, Department of Economics.
    3. Robert A. Hart, 2003. "Overtime Working, The Phillips Curve And The Wage Curve: British Engineering, 1926–66," Manchester School, University of Manchester, vol. 71(2), pages 97-112, March.
    4. Simonetta Longhi, 2012. "Job Competition and the Wage Curve," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 611-620, August.

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