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A Cointegration Model for Search Equilibrium Wage Formation Author info | Abstract | Publisher info | Download info | Related research | Statistics Lourens Broersma
F. A. G. den Butter
Udo Kock
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In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus value of a realized match. From this perspective, this paper presents an econometric analysis of the influence of labor market flows on wage formation as an alternative to the traditional specification of wage equations in which unemployment represents Phillipscurve or wage-curve effects. The paper estimates a dynamic wage equation for the Netherlands using a cointegration approach. It finds that labor flows, and notably flows from outside the labor market, are important determinants of both short-run and long-run wage setting.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
04/92.
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Length: 19 pages
Date of creation: 15 Jun 2004Date of revision:
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Keywords: Wages ; Labor markets ; Economic models ; Other versions of this item:
This paper has been announced in the following NEP Reports :
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references Cited by : (explanations , 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.)
Katarzyna Budnik, 2008.
"Search Equilibrium with Migration: the Case of Poland ,"
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