The wage curve: A panel data view of labour market segments
AbstractThe paper studies the relationship between the local unemployment rate and wage level – commonly referred to as the wage curve. Using a panel data setup for annual enterprise-level microdata, we confirm previous findings that wages in Slovakia are, on the whole, relatively flexible – with a rise in the local unemployment rate of 1 percentage point being associated with a drop in wages of 0.85%. We find, however, that these elasticities differ considerably across sectors, regions and, in particular, skills. Our results indicate that overall wage flexibility in the Slovak labour market is driven more by the wage flexibility of higher-skilled employees, and their broader opportunities for employment, than by the institutional arrangements of the labour market.
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Bibliographic InfoPaper provided by Research Department, National Bank of Slovakia in its series Working and Discussion Papers with number WP 3/2010.
Length: 22 pages
Date of creation: Dec 2010
Date of revision:
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More information through EDIRC
wage curve; panel data; unemployment elasticity of wages; wage flexibility; Slovakia; Phillips curve; microdata;
Find related papers by JEL classification:
- E - Macroeconomics and Monetary Economics
- E - Macroeconomics and Monetary Economics
- C - Mathematical and Quantitative Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-02 (All new papers)
- NEP-LAB-2011-04-02 (Labour Economics)
- NEP-MAC-2011-04-02 (Macroeconomics)
- NEP-TRA-2011-04-02 (Transition Economics)
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.:
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