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The Wage Curve in Chile

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  • Pablo García
  • Paulina Granados

Abstract

This paper analyses the relationship between an individual’s wage and unemployment in her region and industrial sector —the Wage Curve— in Chile from the 1990s onwards. It uses a host of national survey evidence, including the CASEN (Encuesta de Caracterización Socieconómica Nacional) and ESI (Encuesta Suplementaria de Ingreso) surveys. The evidence clearly points to the existence of a Wage Curve in Chile. The coefficient that relates individual wage with local unemployment rate is –0.04, and –0.13 in the case of the sectoral unemployment rate, both similar to those found in studies for other economies. Moreover, after 1999 the responsiveness of wages to local/sectoral unemployment rates seems to have increased.

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Bibliographic Info

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 320.

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Date of creation: May 2005
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Handle: RePEc:chb:bcchwp:320

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  1. Karsten Albæk & Rita Asplund & Stig Blomskog & Erling Barth & Björn Rúnar Guðmundsson & Vifill Karlsson & Erik Strøjer Madsen, 1999. "Dimensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility without Wage Curves," Discussion Papers 99-24, University of Copenhagen. Department of Economics.
  2. Lawrence F. Katz & Olivier Blanchard, 1999. "Wage Dynamics: Reconciling Theory and Evidence," American Economic Review, American Economic Association, vol. 89(2), pages 69-74, May.
  3. Stéphanie Guichard & Jean-Pierre Laffargue, 2000. "The Wage Curve: The Lessons of an Estimation Over a Panel of Countries," Working Papers 2000-21, CEPII research center.
  4. Tuomas Pekkarinen, 2001. "The wage curve : evidence from the Finnish metal industry panel data," Finnish Economic Papers, Finnish Economic Association, vol. 14(1), pages 51-60, Spring.
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