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Spatial heterogeneity in the wage curve

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  • Deller, Steven

Abstract

Blanchflower and Oswald argue that the wage curve is a predictable empirical relationship with the “unemployment elasticity of pay” of about −0.1. Using GWR I find evidence of significant spatial heterogeneity in the unemployment elasticity of pay for US counties.

Suggested Citation

  • Deller, Steven, 2011. "Spatial heterogeneity in the wage curve," Economics Letters, Elsevier, vol. 113(3), pages 231-233.
  • Handle: RePEc:eee:ecolet:v:113:y:2011:i:3:p:231-233
    DOI: 10.1016/j.econlet.2011.04.015
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    References listed on IDEAS

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    1. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x, December.
    2. Albaek, K. & Asplund, R. & Blomskog, S. & Barth, E. & Guomundsson,B.R. & Karlsson, V. & Madsen, E.S., 1999. "Domensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility without Wage Curves," Papers 99-24, Carleton - School of Public Administration.
    3. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2006. "Spatial Heterogeneity And The Wage Curve Revisited," Journal of Regional Science, Wiley Blackwell, vol. 46(4), pages 707-731, October.
    4. Peter Nijkamp & Jacques Poot, 2005. "The Last Word on the Wage Curve?," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 421-450, July.
    5. repec:rre:publsh:v:37:y:2007:i:3:p:303-43 is not listed on IDEAS
    6. David Card, 1995. "The Wage Curve: A Review," Working Papers 722, Princeton University, Department of Economics, Industrial Relations Section..
    7. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1243-1284.
    8. Yan Kestens & Marius Thériault & François Des Rosiers, 2006. "Heterogeneity in hedonic modelling of house prices: looking at buyers’ household profiles," Journal of Geographical Systems, Springer, vol. 8(1), pages 61-96, March.
    9. Deller, Steven C. & Tsai, Tsung-Hsiu (Sue), 1998. "An Examination of the Wage Curve: A Research Note," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 28(2), pages 1-10.
    10. Christopher Bitter & Gordon Mulligan & Sandy Dall’erba, 2007. "Incorporating spatial variation in housing attribute prices: a comparison of geographically weighted regression and the spatial expansion method," Journal of Geographical Systems, Springer, vol. 9(1), pages 7-27, April.
    11. Blanchflower, David G & Oswald, Andrew J, 1990. "The Wage Curve," Scandinavian Journal of Economics, Wiley Blackwell, vol. 92(2), pages 215-235.
    12. David Card, 1995. "The Wage Curve: A Review," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 285-299, June.
    13. Rupasingha, Anil & Goetz, Stephan J., 2007. "Social and political forces as determinants of poverty: A spatial analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 650-671, August.
    14. 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.
    15. Deller, Steven C., 2009. "Wages, Rent, Unemployment and Amenities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2), pages 1-14.
    16. Johansen, Kare, 1995. "Norwegian Wage Curves," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(2), pages 229-247, May.
    17. Partridge, Mark D. & Rickman, Dan S., 1997. "Has the wage curve nullified the Harris-Todaro model? Further US evidence," Economics Letters, Elsevier, vol. 54(3), pages 277-282, July.
    18. Partridge, Mark D. & Rickman, Dan S., 2007. "Persistent Pockets of Extreme American Poverty and Job Growth: Is There a Place-Based Policy Role?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(1), pages 1-24, April.
    19. J. Paul Elhorst & Uwe Blien & Katja Wolf, 2007. "New Evidence on the Wage Curve," International Regional Science Review, , vol. 30(2), pages 173-191, April.
    20. Blanchflower, David G & Oswald, Andrew J, 1994. "Estimating a Wage Curve for Britain: 1973-90," Economic Journal, Royal Economic Society, vol. 104(426), pages 1025-1043, September.
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    Cited by:

    1. Raul Ramos & Catia Nicodemo & Esteve Sanromá, 2015. "A spatial panel wage curve for Spain," Letters in Spatial and Resource Sciences, Springer, vol. 8(2), pages 125-139, July.
    2. Juho Jokinen, 2020. "The wage curve and local monopsony power," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 159-183, February.
    3. Paredes, Dusan & Iturra, Victor, 2012. "Market access and wages: A spatially heterogeneous approach," Economics Letters, Elsevier, vol. 116(3), pages 349-353.
    4. García-Mainar , Inmaculada & Montuenga-Gómez , Víctor M., 2012. "Wage dynamics in Spain: evidence from individual data (1994-2001)," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 41-58.
    5. Mark J. Holmes & Jesús Otero, 2022. "The wage curve within and across regions: new insights from a pairwise view of US states," Empirical Economics, Springer, vol. 62(5), pages 2069-2089, May.
    6. Kazuyuki Inagaki, 2015. "Wage curve in dual labor markets: cross-sectional evidence from Japan," Economics and Business Letters, Oviedo University Press, vol. 4(2), pages 51-56.
    7. Li, Guo & Mroz, Thomas A., 2013. "Expected income and labor market choices of US married couples: A locally weighted regression approach," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 985-995.

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    More about this item

    Keywords

    J3; R1; Wages; Unemployment; Spatial variation;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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