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Overtime Working, The Phillips Curve And The Wage Curve: British Engineering, 1926–66

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  • Robert A. Hart

Abstract

This paper shows that wage–unemployment elasticities derived from estimated wage curves and Phillips curves may be critically dependent on the measurement of wages. Incorporating hourly wage earnings that include the influence of overtime payments can lead to seriously distorted results. Meaningful elasticities are obtained only if hourly standard wages form the basis of analysis. Work is based on a unique data set describing two homogeneous blue–collar occupational groups—skilled fitters and unskilled labourers—in the British engineering industry. Each group is also divided into timeworkers and piece–rate workers. Data are aggregated into a panel of 28 local labour markets and cover the highly contrasting periods 1928–38 and 1954–66.

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  • Robert A. Hart, 2003. "Overtime Working, The Phillips Curve And The Wage Curve: British Engineering, 1926–66," Manchester School, University of Manchester, vol. 71(2), pages 97-112, March.
    • Handle: RePEc:bla:manchs:v:71:y:2003:i:2:p:97-112
    DOI: 10.1111/1467-9957.00338
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    References listed on IDEAS

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    4. Esu, Godwin & Atan, Johnson, 2017. "The Philip's Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis," MPRA Paper 82112, University Library of Munich, Germany.
    5. Shahbaz, Muhammad & Islam , Faridul & Shabbir, Muhammad Shahbaz, 2012. "Phillips Curve in a Small Open Economy: A Time Series Exploration of North Cyprus," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(4), pages 113-130, December.
    6. Esteban Sanroma & Raul Ramos, 2005. "Further Evidence on Disaggregated Wage Curves: The Case of Spain," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(3), pages 227-243, September.
    7. Fumitaka Furuoka & Chong Mun Ho, 2009. "Phillips curves and openness: New evidence from selected Asian economies," Economics Bulletin, AccessEcon, vol. 29(1), pages 253-264.
    8. Victor Montuenga & Inmaculada Garcia, 2011. "The wage dynamics in Spain: evidence from individual data," ERSA conference papers ersa11p585, European Regional Science Association.
    9. Atif Awad & Ishak Youssof, 2016. "The impact of economic globalisation on unemployment: The Malaysian experience," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(7), pages 938-958, October.
    10. Víctor M. Montuenga‐Gómez & José M. Ramos‐Parreño, 2005. "Reconciling the Wage Curve and the Phillips Curve," Journal of Economic Surveys, Wiley Blackwell, vol. 19(5), pages 735-765, December.
    11. Fumitaka Furuoka, 2007. "Does the “Phillips Curve” Really Exist? New Empirical Evidence from Malaysia," Economics Bulletin, AccessEcon, vol. 5(16), pages 1-14.
    12. Fumitaka Furuoka & Qaiser Munir & Hanafiah Harvey, 2013. "Does the Phillips curve exist in the Philippines?," Economics Bulletin, AccessEcon, vol. 33(3), pages 2001-2016.

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