Spatial Dynamics And Heterogeneity In The Cyclicality Of Real Wages
AbstractNeither the issue of how local and aggregate labor markets interact over time-nor the issue of how heterogeneity by education, race, and other factors interacts with these spatial dynamics-has previously been explored in the literature on the cyclicality of real wages. This study investigates how real wages respond to local and aggregate unemployment rates over time, and explores possible heterogeneities in the responses. Results, based upon data from the Panel Study of Income Dynamics, indicate that real wages move procyclically with both aggregate and local markets, but that the response to local changes occurs with a lag; that rates of return to education are procyclical overall for aggregate labor markets, but tend to be countercyclical for blacks; and that wages of union, manufacturing, blue-collar, and black workers tend to be less procyclical, even countercyclical for black college graduates. Overall, we find substantial spatial dynamics and heterogeneity in the cyclicality of real wages. © 1999 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by MIT Press in its journal The Review of Economics and Statistics.
Volume (Year): 81 (1999)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lindquist, Matthew J., 2002.
"Capital-Skill Complementarity and Inequality Over the Business Cycle,"
Research Papers in Economics, Stockholm University, Department of Economics
2002:14, Stockholm University, Department of Economics, revised 01 Sep 2003.
- Matthew J. Lindquist, 2004. "Capital-Skill Complementarity and Inequality Over the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(3), pages 519-540, July.
- Anabela Carneiro & Pedro Portugal, 2004.
"Workers' Flows and Real Wage Cyclicality,"
Working Papers, Banco de Portugal, Economics and Research Department
w200409, Banco de Portugal, Economics and Research Department.
- Anabela Carneiro & Pedro Portugal, 2004. "Workers' Flows and Real Wage Cyclicality," CEF.UP Working Papers, Universidade do Porto, Faculdade de Economia do Porto 0402, Universidade do Porto, Faculdade de Economia do Porto.
- Carneiro, Anabela & Portugal, Pedro, 2007. "Workers’ Flows and Real Wage Cyclicality," IZA Discussion Papers 2604, Institute for the Study of Labor (IZA).
- Christopher Otrok & Panayiotis M. Pourpourides, 2011. "On The Cyclicality of Real Wages and Wage DiÂ¤erentials," Working Papers, Department of Economics, University of Missouri 1116, Department of Economics, University of Missouri.
- Campbell III, Carl M., 2008. "An efficiency wage approach to reconciling the wage curve and the Phillips curve," Labour Economics, Elsevier, Elsevier, vol. 15(6), pages 1388-1415, December.
- Christopher Otrok & Panayiotis M. Pourpourides, 2011.
"On the Cyclicality of Real Wages and Wage Differentials,"
Working Papers, Central Bank of Cyprus
2011-4, Central Bank of Cyprus.
- Otrok, Christopher & Pourpourides, Panayiotis M., 2008. "On The Cyclicality of Real Wages and Wage Differentials," Cardiff Economics Working Papers, Cardiff University, Cardiff Business School, Economics Section E2008/19, Cardiff University, Cardiff Business School, Economics Section, revised Mar 2009.
- James P. Ziliak & David N. Figlio, 2000. "Geographic Differences in AFDC and Food Stamp Caseloads in the Welfare Reform Era," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 180, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Wozniak, Abigail, 2006. "Educational Differences in the Migration Responses of Young Workers to Local Labor Market Conditions," IZA Discussion Papers 1954, Institute for the Study of Labor (IZA).
- Carlén, Björn, 2002. "Exclusionary Manipulation of Carbon Permit Markets: A Laboratory Test," Research Papers in Economics, Stockholm University, Department of Economics 2002:15, Stockholm University, Department of Economics.
- Ofer Malamud & Abigail K. Wozniak, 2010. "The Impact of College Education on Geographic Mobility: Identifying Education Using Multiple Components of Vietnam Draft Risk," NBER Working Papers 16463, National Bureau of Economic Research, Inc.
- Théophile AZOMAHOU, 1999. "Estimation of Spatial Panel Data Models Using a Minimum Distance Estimator: Application," Working Papers of BETA, Bureau d'Economie ThÃ©orique et AppliquÃ©e, UDS, Strasbourg 9912, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Théophile Azomahou, 2008. "Minimum distance estimation of the spatial panel autoregressive model," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), Association Française de Cliométrie (AFC), vol. 2(1), pages 49-83, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.