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The Impact of Educational Attainment and Gender on the Inflation-Unemployment Tradeoff

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  • Sandeep Mazumder

    () (Wake Forest University)

Abstract

Recent research has examined the link between rising educational attainment and its impact on inflation, via the equilibrium rate of unemployment. Studies such as Daly et al. (2007) have found that a measure of aggregate unemployment that has been adjusted for changes in the educational structure of the U.S. performs well in the Phillips curve, and that accounting for the level of education allows for superior estimation of group-specific Phillips curves. In this paper we consider what happens when the aggregate model is applied to a broader sample of countries, including both advanced and developing economies. We find that the education-adjusted unemployment gap does little to help estimate the inflation-unemployment tradeoff for a wider range of countries. Moreover, we find little evidence of a Phillips curve over the period of 1999 to 2008 for the developing countries in our sample. We also implement a gender-adjusted unemployment gap, and find that this variable is significant, but only because labor force shares have not changed substantially during the time period tested.

Suggested Citation

  • Sandeep Mazumder, 2014. "The Impact of Educational Attainment and Gender on the Inflation-Unemployment Tradeoff," Economics Bulletin, AccessEcon, vol. 34(2), pages 651-662.
  • Handle: RePEc:ebl:ecbull:eb-13-00372
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    References listed on IDEAS

    as
    1. Kiley, Michael T., 2013. "Output gaps," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 1-18.
    2. Tulip Peter, 2004. "Do Minimum Wages Raise the NAIRU?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 4(1), pages 1-36, April.
    3. Hodrick, Robert J & Prescott, Edward C, 1997. "Postwar U.S. Business Cycles: An Empirical Investigation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(1), pages 1-16, February.
    4. Mary C. Daly & Osborne Jackson & Robert G. Valletta, 2007. "Educational attainment, unemployment, and wage inflation," Economic Review, Federal Reserve Bank of San Francisco, pages 49-61.
    5. Victor Claar, 2006. "Is the NAIRU more useful in forecasting inflation than the natural rate of unemployment?," Applied Economics, Taylor & Francis Journals, vol. 38(18), pages 2179-2189.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Phillips curve; inflation; unemployment; education; gender.;

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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