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Job Competition and the Wage Curve

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  • Simonetta Longhi

Abstract

Longhi S. Job competition and the wage curve, Regional Studies . The wage curve literature consistently finds a negative relationship between regional unemployment rates and regional wages; the most widely accepted theoretical explanations interpret the unemployment rate as a measure of job competition. This paper proposes new ways of measuring job competition, alternative to the unemployment rate, and finds that the negative relationship still holds when job competition is measured following the job search literature. While for men the wage impact of the theoretically based measures of job competition is rather similar to the wage impact of the unemployment rate, for women the difference is substantial. Longhi S. La comp�tition pour l'emploi et la courbe des salaires, Regional Studies . La documentation sur la courbe des salaires affirme syst�matiquement que le taux de chômage r�gional est en corr�lation faible avec les salaires r�gionaux. Les explications th�oriques les plus reçues considèrent le taux de chômage comme une mesure de la comp�tition pour l'emploi. Cet article cherche à proposer de nouvelles façons de mesurer la comp�tition, à part le taux de chômage, et trouve que la corr�lation faible persiste quand on mesure la comp�tition pour l'emploi selon la documentation sur la recheche pour l'emploi. Alors que pour les hommes l'impact sur les salaires des mesures th�oriques de la comp�tition pour l'emploi s'avère plutôt similaire à celui du taux de chômage, la diff�rence pour les femmes s'avère importante. Courbe des salaires Comp�tition pour l'emploi Grande-Bretagne Longhi S. Arbeitsmarktkonkurrenz und Lohnkurve, Regional Studies . In der Literatur über die Lohnkurve wird übereinstimmend eine negative Beziehung zwischen der regionalen Arbeitslosenquote und dem regionalen Lohnniveau festgestellt, wobei die Arbeitslosenquote in den theoretischen Erklärungen der herrschenden Meinung als Maßstab der Arbeitsmarktkonkurrenz interpretiert wird. In diesem Beitrag werden neue Methoden zur Messung der Arbeitsmarktkonkurrenz als Alternative zur Arbeitslosigkeit vorgeschlagen, und es wird festgestellt, dass die negative Beziehung weiterhin bestehen bleibt, wenn die Arbeitsmarktkonkurrenz gemäß der Literatur über Arbeitsuche gemessen wird. Für Männer fällt die Auswirkung der theoretisch basierten Maßstäbe der Arbeitsmarktkonkurrenz auf die Löhne recht ähnlich aus wie die Auswirkung der Arbeitslosenquote auf die Löhne; bei Frauen ist hingegen ein erheblicher Unterschied zu verzeichnen. Lohnkurve Arbeitsmarktkonkurrenz Großbritannien Longhi S. Competencia laboral y curva salarial, Regional Studies . En las publicaciones sobre la curva salarial se observa sistemáticamente una relación negativa entre los �ndices de desempleo y los salarios regionales, de modo que el �ndice de desempleo se interpreta en general como una medida de competencia laboral en las explicaciones teóricas más aceptadas. En este art�culo proponemos nuevas formas de medir la competencia laboral como alternativas al �ndice de desempleo destacando que la relación negativa aún está vigente cuando se mide la competencia laboral siguiendo las publicaciones sobre búsqueda de empleo. Mientras que para los hombres el impacto salarial de las medidas de competencia laboral basadas en la teor�a es bastante similar al impacto salarial del �ndice de desempleo, para las mujeres la diferencia es considerable. Curva salarial Competencia laboral Gran Bretaña

Suggested Citation

  • Simonetta Longhi, 2012. "Job Competition and the Wage Curve," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 611-620, August.
  • Handle: RePEc:taf:regstd:v:46:y:2012:i:5:p:611-620
    DOI: 10.1080/00343404.2010.521145
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    3. 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.
    4. Baltagi, Badi H. & Rokicki, Bartlomiej, 2014. "The spatial Polish wage curve with gender effects: Evidence from the Polish Labor Survey," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 36-47.
    5. Rokicki, Bartlomiej & Blien, Uwe & Hewings, Geoffrey J.D. & thi Hong Van, Phan, 2021. "Is there a wage curve with regional real wages? An analysis for the US and Poland," Economic Modelling, Elsevier, vol. 102(C).
    6. Hynninen, Sanna-Mari, 2009. "Is there a wage curve for the highly educated?," ISER Working Paper Series 2009-17, Institute for Social and Economic Research.
    7. Blien, Uwe & Messmann, Susanne & Trappmann, Mark, 2012. "Do reservation wages react to regional unemployment?," IAB-Discussion Paper 201222, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Reinhold Kosfeld & Christian Dreger, 2018. "Local and spatial cointegration in the wage curve – a spatial panel analysis for german regions," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 38(1), pages 53-75, February.
    9. 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.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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