Political-Economic Regime and the Wage Curve: Evidence from Chile, 1957-96
AbstractThis paper tests whether a wage curveâ€”a negative relationship between unemployment and payâ€”existed in Santiago, Chile during 1957-1996. The analysis is divided into two periods corresponding to the distinct economic models in place in the country. For 1957-1973, during the period of inward-led development, we reject the existence of a wage curve. The second period, 1974-1996, corresponds to an external opening of the economy and the deregulation of publicly controlled industries and labor relations. For this period, we find a wage curve of â€“0.08, which is similar to the United States and other western, capitalist economies. Disaggregating the analysis for different groups of workers, we find that since the economic reforms, womenâ€™s pay falls three times more than menâ€™s when unemployment doubles. Also, non-university educated and public sector workers have suffered greater pay decreases from unemployment. Workers in the informal sector do not experience a drop in pay, contradicting the notion that the informal sector acts as a buffer for unemployed formal-sector workers.
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.
Bibliographic InfoPaper provided by Schwartz Center for Economic Policy Analysis (SCEPA), The New School in its series SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. with number 2002-10.
Length: 33 pages
Date of creation: Aug 2002
Date of revision:
wage curve; unemployment; inequality; Chile;
Other versions of this item:
- Janine Berg & Dante Contreras, 2004. "Political-Economic Regime and the Wage Curve: Evidence from Chile, 1957-96," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(2), pages 151-165.
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-09-21 (All new papers)
- NEP-LAB-2002-09-21 (Labour Economics)
- NEP-LAM-2002-09-21 (Central & South America)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Blanchflower, David G & Oswald, Andrew J, 1990.
" The Wage Curve,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 92(2), pages 215-35.
- David Card, 1995.
"The Wage Curve: A Review,"
Journal of Economic Literature,
American Economic Association, vol. 33(2), pages 285-299, June.
- repec:fth:prinin:343 is not listed on IDEAS
- David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
- Edwards, Sebastian & Edwards, Alejandra Cox, 1991. "Monetarism and Liberalization," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226184890, June.
- Kennedy, S. & Borland, J., 1997.
"A wage Curve for Australia?,"
CEPR Discussion Papers
372, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
- Baltagi, Badi H. & Blien, Uwe, 1998. "The German wage curve: evidence from the IAB employment sample," Economics Letters, Elsevier, vol. 61(2), pages 135-142, November.
- Richard B. Freeman, 2009. "Labor Regulations, Unions, and Social Protection in Developing Countries: Market distortions or Efficient Institutions?," NBER Working Papers 14789, National Bureau of Economic Research, Inc.
- Deller, Steven C., 2009. "Wages, Rent, Unemployment and Amenities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2).
- Hector Elias Gutierrez Rufrancos, 2012. "The Mexican Wage Curve 2000-2003: A Quantile Analysis," Working Paper Series 3412, Department of Economics, University of Sussex.
- Badi H. Baltagi & Yusuf Soner Baskaya & Timur Hulagu, 2012.
"How Different Are the Wage Curves for Formal and Informal Workers? Evidence from Turkey,"
Center for Policy Research Working Papers
145, Center for Policy Research, Maxwell School, Syracuse University.
- Badi H. Baltagi & Yusuf Soner Baskaya & Timur Hulagu, 2013. "How different are the wage curves for formal and informal workers? Evidence from Turkey," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 271-283, 06.
- Badi H. Baltagi & Yusuf Soner Baskaya & Timur Hulagu, 2012. "How Different are the Wage Curves for Formal and Informal Workers? Evidence from Turkey," Working Papers 1216, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Baltagi, Badi H. & Baskaya, Yusuf Soner & Hulagu, Timur, 2012. "How Different Are the Wage Curves for Formal and Informal Workers? Evidence from Turkey," IZA Discussion Papers 6836, Institute for the Study of Labor (IZA).
- Blanchflower, David G. & Oswald, Andrew J., 2005.
"The Wage Curve Reloaded,"
IZA Discussion Papers
1665, Institute for the Study of Labor (IZA).
- David Castro Lugo, 2006. "Curva salarial: una aplicación para el caso de México, 1993-2002," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 21(2), pages 233-273.
- Marisa Bucheli & Cecilia González, 2007.
"An estimation of the wage curve for Uruguay,"
Documentos de Trabajo (working papers)
1107, Department of Economics - dECON.
- Raul Ramos & Juan Carlos Duque & Jordi Suriñach, 2009.
"Is The Wage Curve Formal Or Informal? Evidence For Colombia,"
IREA Working Papers
200918, University of Barcelona, Research Institute of Applied Economics, revised Jul 2009.
- Ramos, Raul & Duque, Juan C. & Surinach, Jordi, 2010. "Is the wage curve formal or informal? Evidence for Colombia," Economics Letters, Elsevier, vol. 109(2), pages 63-65, November.
- Ramos, Raul & Duque, Juan Carlos & Surinach, Jordi, 2009. "Is the Wage Curve Formal or Informal? Evidence for Colombia," IZA Discussion Papers 4461, Institute for the Study of Labor (IZA).
- Freeman, Richard B., 2010. "Labor Regulations, Unions, and Social Protection in Developing Countries," Handbook of Development Economics, Elsevier.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bridget Fisher).
If references are entirely missing, you can add them using this form.