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International Wage Curves

In: Differences and Changes in Wage Structures

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  • David G. Blanchflower
  • Andrew Oswald

Abstract

The paper provides international evidence for the existence of a negatively sloped locus linking the level of pay to the rate of regional (or industry) unemployment. This 'wage curve' is found using microeconomic data for Britain, the US, Canada, Korea, Austria, Italy, Holland, Switzerland, Norway and Germany. The average unemployment elasticity of pay is approximately -0.1. The paper sets out a multi-region efficiency wage model as one possible interpretation of the data.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

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This chapter was published in:

  • Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 7855.

    Handle: RePEc:nbr:nberch:7855

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