Spatial Dynamics And Heterogeneity In The Cyclicality Of Real Wages
Neither the issue of how local and aggregate labor markets interact over time-nor the issue of how heterogeneity by education, race, and other factors interacts with these spatial dynamics-has previously been explored in the literature on the cyclicality of real wages. This study investigates how real wages respond to local and aggregate unemployment rates over time, and explores possible heterogeneities in the responses. Results, based upon data from the Panel Study of Income Dynamics, indicate that real wages move procyclically with both aggregate and local markets, but that the response to local changes occurs with a lag; that rates of return to education are procyclical overall for aggregate labor markets, but tend to be countercyclical for blacks; and that wages of union, manufacturing, blue-collar, and black workers tend to be less procyclical, even countercyclical for black college graduates. Overall, we find substantial spatial dynamics and heterogeneity in the cyclicality of real wages. © 1999 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Volume (Year): 81 (1999)
Issue (Month): 2 (May)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535|
When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:81:y:1999:i:2:p:227-236. 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: (Kristin Waites)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.