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Wage curve in dual labor markets: cross-sectional evidence from Japan

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  • Kazuyuki Inagaki

Abstract

We find that the wage-unemployment relationship in Japan depends on the degree of labor market duality. The unemployment elasticity of wages is negative for the group with a lower degree of duality and, therefore, the Japanese wage curve holds for that group. However, the unemployment elasticity of wages is positive for the group with a higher degree of duality. This result is also valid as explained by the theory of compensating differentials. Therefore, the existence of dual labor market can affect the wage-unemployment relationship in developed countries such as Japan.

Suggested Citation

  • Kazuyuki Inagaki, 2015. "Wage curve in dual labor markets: cross-sectional evidence from Japan," Economics and Business Letters, Oviedo University Press, vol. 4(2), pages 51-56.
    • Handle: RePEc:ove:journl:aid:10591
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/10591
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    References listed on IDEAS

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    Cited by:

    1. David G. Blanchflower & Alex Bryson & Jason Spurling, 2022. "The Wage Curve After the Great Recession," DoQSS Working Papers 22-06, Quantitative Social Science - UCL Social Research Institute, University College London.

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