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Job Competition and the Wage Curve

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  • Longhi, Simonetta

    ()
    (ISER, University of Essex)

Abstract

The wage curve literature consistently finds a negative relationship between regional unemployment rates and regional wages; the most widely accepted theoretical explanations interpret the unemployment rate as a measure of job competition. This paper proposes new ways of measuring job competition, alternative to the unemployment rate, and finds that the negative relationship still holds when job competition is measured following the job search literature. While for men the wage impact of the theoretically-based measures of job competition is rather similar to the wage impact of the unemployment rate, for women the difference is substantial.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4777.

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Length: 22 pages
Date of creation: Feb 2010
Date of revision:
Publication status: published in: Regional Studies, 2012,46 (5), 611-620
Handle: RePEc:iza:izadps:dp4777

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Keywords: unemployment; on-the-job search; wage curve;

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References

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Cited by:
  1. Hynninen, Sanna-Mari, 2009. "Is there a wage curve for the highly educated?," ISER Working Paper Series 2009-17, Institute for Social and Economic Research.
  2. Blien, Uwe & Messmann, Susanne & Trappmann, Mark, 2012. "Do reservation wages react to regional unemployment?," IAB Discussion Paper 201222, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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