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An Introduction to the Wage Curve

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  • David G. Blanchflower
  • Andrew J. Oswald

Abstract

This paper documents a statistical regulatity or law. It shows that there exists a downward-sloping curve linking the level of a worker's pay to the unemployment rate in the worker's region. The same curve can be found in microeconomic data sets from sixteen countries. The existence of this curve raises doubts about conventional wisdom in labor economics, regional economics, and macroeconomics.

Suggested Citation

  • 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.
  • Handle: RePEc:aea:jecper:v:9:y:1995:i:3:p:153-67
    Note: DOI: 10.1257/jep.9.3.153
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.9.3.153
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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