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Unemployment, Duration and Wage Determination in the UK: Evidence from the FES 1980-86

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  • Blackaby, D H
  • Bladen-Hovell, R C
  • Symons, E J

Abstract

This paper presents evidence on the relationship between duration and wage determination in the United Kingdom based upon a data set obtained by combining the Family Expenditure Survey for 1980-86, supplemented with regional unemployment rates and cost of living indices. The results support the contention of R. Layard and S. J. Nickell (1986, 1987) that the long-term unemployed effectively drop out of the labor market. Recent claims that this duration effect is removed once unemployment nonlinearities are introduced are also examined but little supporting evidence is found. Instead, in certain specifications, the opposite occurs: duration effects dominate nonlinearities. Copyright 1991 by Blackwell Publishing Ltd

Suggested Citation

  • Blackaby, D H & Bladen-Hovell, R C & Symons, E J, 1991. "Unemployment, Duration and Wage Determination in the UK: Evidence from the FES 1980-86," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(4), pages 377-399, November.
  • Handle: RePEc:bla:obuest:v:53:y:1991:i:4:p:377-99
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    Cited by:

    1. 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.
    2. repec:eee:labchp:v:3:y:1999:i:pc:p:3085-3139 is not listed on IDEAS
    3. Speigner, Bradley, 2014. "Long-term unemployment and convexity in the Phillips curve," Bank of England working papers 519, Bank of England.

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