The Slope of the U.S. Nominal Treasury Yield Curve Unemployment and Stability of Wage Determination: United States versus New York State
We find the Phillips-type model performs well in explaining wage adjustment for US non-farm business, US manufacturing, and NY manufacturing sector, showing a typical adjustment to price inflation expectation and labor market tightness. While the basic wage model shows evidence of a structural shift for the post-1991 period, this is not evident in the adjusted models for both US non-farm business and NY manufacturing, implying that the observed structural shift for the post-1991 period is likely to be the result of model mis-, or under-specification. The effect of the fraction of unemployment due to permanent job loss on wage inflation appears to be manufacturing-specific, while a smaller adjustment to price inflation expectation appears to be state-specific. On the other hand, the significant effect of the percent of adults unemployed appears to be a national phenomenon.
Volume (Year): 41 (2010)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://nysea.bizland.com/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cara S. Lown & Robert W. Rich, 1997.
"Is there an inflation puzzle?,"
Economic Policy Review,
Federal Reserve Bank of New York, issue Dec, pages 51-77.
- Alogoskoufis, George & Smith, Ron, 1991. " On Error Correction Models: Specification, Interpretation, Estimation," Journal of Economic Surveys, Wiley Blackwell, vol. 5(1), pages 97-128.
- Borjas, George J & Ramey, Valerie A, 1995. "Foreign Competition, Market Power, and Wage Inequality," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1075-1110, November.
- John V. Duca, 1996.
"Inflation, unemployment, and duration,"
9603, Federal Reserve Bank of Dallas.
- Hyclak, Thomas & Ohn, Jonathan, 2001. "Wage inflation and the post-1991 duration puzzle," Economics Letters, Elsevier, vol. 73(1), pages 97-104, October.
When requesting a correction, please mention this item's handle: RePEc:nye:nyervw:v:41:y:2010:i:1:p:3-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eryk Wdowiak)
If references are entirely missing, you can add them using this form.