IDEAS home Printed from https://ideas.repec.org/p/nse/doctra/g2000-12.html
   My bibliography  Save this paper

Local unemployment and wages

Author

Listed:
  • Ch. GIANELLA

    (Insee)

Abstract

The purpose of this paper is to examine how the state of the local labour market influences pay, by estimating a Wage Curve for France. First it appears that individual wages are negatively correlated with regional unemployment rates, when taking into account individual characteristics. This feature is true for all categories of workers, for different measures of the local unemployment rate, and also for aggregate data. We find an elasticity of wages with respect to unemployment varying between 0.05 and 0.1, and show that permanent effects of the local unemployment on wages rate are stronger than transitory effects. Second we run estimations on cross section and find that the response of wages to unemployment has decreased over time. We try more flexible functional forms for the unemployment rate and it appears that the negative relationship between wages and unemployment is convex rather than linear. Finally, we do not find much autoregression in our wage equation (like Blanchflower and Oswald, 1994). It would mean that the levels and not the variations of wages are related to unemployment, contrary to a Phillips Curve specification.

Suggested Citation

  • Ch. GIANELLA, 2000. "Local unemployment and wages," Documents de Travail de l'Insee - INSEE Working Papers g2000-12, Institut National de la Statistique et des Etudes Economiques.
    • Handle: RePEc:nse:doctra:g2000-12
    as

    Download full text from publisher

    File URL: https://www.bnsp.insee.fr/ark:/12148/bc6p06zqr65/f1.pdf
    File Function: Document de travail de la DESE numéro G2000-12
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anne-Gisèle Privat, 2005. "L'avenir des retraites en France: Evalutation de l'impact des réformes de 1993 et de 2033 à l'aide du modèle de microsimulation Artémis," Sciences Po publications info:hdl:2441/f4rshpf3v1u, Sciences Po.
    2. Estevão, Marcello & Nargis, Nigar, 2005. "Structural Labor Market Changes in France," IZA Discussion Papers 1621, Institute of Labor Economics (IZA).
    3. repec:hal:wpspec:info:hdl:2441/f4rshpf3v1umfa09lat214kj4 is not listed on IDEAS
    4. repec:spo:wpecon:info:hdl:2441/f4rshpf3v1umfa09lat214kj4 is not listed on IDEAS
    5. repec:hal:spmain:info:hdl:2441/f4rshpf3v1umfa09lat214kj4 is not listed on IDEAS
    6. David Spector, 2001. "Emploi : une analyse critique des politiques malthusiennes," Economie & Prévision, La Documentation Française, vol. 0(4), pages 13-31.

    More about this item

    Keywords

    Wage Curve; formation des salaires; taux de chômage régional;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nse:doctra:g2000-12. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: INSEE (email available below). General contact details of provider: https://edirc.repec.org/data/inseefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.