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The Wage Curve Reconsidered: Is It Truly An 'Empirical Law Of Economics'?

  • Bernard FINGLETON

    ()

    (Department of Land Economy, University of Cambridge)

  • Silvia PALOMBI

    ()

    (Department of Economics, University of Strathclyde)

The negative relationship between wages and unemployment, embodied within the so-called wage curve, has an extensive literature and has been referred to as ‘an empirical law of economics’. However there are newer alternative theories that seek to explain the variation in wages without reference to unemployment rates, namely Urban Economics (UE) and New Economic Geography (NEG). The present paper considers the relative success of non-nested models of wage determination from the perspective of Great Britain’s 408 local authorities over the period 1998-2010.

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Article provided by Region et Developpement, LEAD, Universite du Sud - Toulon Var in its journal Région et Développement.

Volume (Year): 38 (2013)
Issue (Month): ()
Pages: 49-92

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Handle: RePEc:tou:journl:v:38:y:2013:p:49-92
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