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The Long-Run Determinants of UK Wages, 1860-2004

  • Jennifer Castle
  • David Hendry

As it is almost 50 years since Phillips (1958), we analyze an historical series on UK wages and their determinants.� Huge changes have occurred over this long run, so congruence is hard to establish: real wages have risen more than 6 fold, and nominal 500 times; laws, technology, wealth distribution, and social structure are unrecognizably different from 1860.� We investigate: wage rates and weekly earnings; real versus nominal wages; breaks over 1860-2004; non-linearities, including Phillips' non-linear response to unemployment; 'trade union power' and unemployment benefits; and measures of excess demand, where workers react more to inflation when it rises.

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 409.

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Date of creation: 01 Oct 2008
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Handle: RePEc:oxf:wpaper:409
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