An estimation of the wage curve for Uruguay
This paper analyzes the existence of a wage curve in Uruguay. We run several models using data for the period 1986-2005. We use two different proxies of the wage and we estimate both microdata and cell-mean regressions. Besides, we run the model for the whole sample and for groups of individuals disaggregated by level of education, gender, age and occupation. The results are consistent with the range of values found in similar studies for other countries. We find a negative relation between unemployment and wages. Specifically, we obtain an elasticity of -0.09. We find a higher elasticity for the youth, women and less educated workers. We also obtain difference results when disaggregating by occupation and formality. The results suggest that an increase of unemployment pushes up informality and self-employment which lead to a depression of earnings in these sectors. Thus, informality and self-employment would act as a buffer for unemployed formal wage earners.
|Date of creation:||Oct 2007|
|Date of revision:|
|Contact details of provider:|| Postal: Constituyente 1502, 6to piso, CP 11200, Montevideo|
Phone: (598) 2410-6449
Fax: (598) 2410-6450
Web page: http://www.fcs.edu.uy/subcategoria.php?SubCatId=48&CatId=53
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David G. Blanchflower & Andrew J. Oswald, 1995.
"The Wage Curve,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 026202375x, June.
- Peter Nijkamp & Jacques Poot, 2002.
"The Last Word on the Wage Curve?,"
Tinbergen Institute Discussion Papers
02-029/3, Tinbergen Institute, revised 13 Mar 2003.
- David G. Blanchflower & Andrew J. Oswald, 2005.
"The Wage Curve Reloaded,"
NBER Working Papers
11338, National Bureau of Economic Research, Inc.
- Julio de Brun & Gaston J. Labadie, 1998.
"Rigidez salarial, precios relativos y ajuste estructural: Una interpretación del desempleo en Uruguay,"
Research Department Publications
- Julio de Brun & Gastón J. Labadie, 1998. "Rigidez Salarial, Precios Relativos y Ajuste Estructural: Una Interpretación del Desempleo en Uruguay," IDB Publications (Working Papers) 7630, Inter-American Development Bank.
- Raul Ramos & Juan Carlos Duque & Jordi Suriñach, 2009.
"Is The Wage Curve Formal Or Informal? Evidence For Colombia,"
IREA Working Papers
200918, University of Barcelona, Research Institute of Applied Economics, revised Jul 2009.
- Ramos, Raul & Duque, Juan C. & Surinach, Jordi, 2010. "Is the wage curve formal or informal? Evidence for Colombia," Economics Letters, Elsevier, vol. 109(2), pages 63-65, November.
- Ramos, Raul & Duque, Juan Carlos & Surinach, Jordi, 2009. "Is the Wage Curve Formal or Informal? Evidence for Colombia," IZA Discussion Papers 4461, Institute for the Study of Labor (IZA).
- repec:fth:prinin:343 is not listed on IDEAS
- David Card, 1995. "The Wage Curve: A Review," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 285-299, June.
- Blanchflower, David G., 2001. "Unemployment, Well-Being, and Wage Curves in Eastern and Central Europe," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 364-402, December.
- Daniel Miles & Máximo Rossi, 2001. "Wage Inequality in Developing Countries: Market Forces or Government Intervention," Documentos de Trabajo (working papers) 1001, Department of Economics - dECON.
- Esteban Sanroma Melendez & Raul Ramos Lobo, 2003. "Wage curves for Spain. Evidence from the family budget survey," Working Papers in Economics 101, Universitat de Barcelona. Espai de Recerca en Economia.
- Janine Berg & Dante Contreras, 2004.
"Political-Economic Regime and the Wage Curve: Evidence from Chile, 1957-96,"
International Review of Applied Economics,
Taylor & Francis Journals, vol. 18(2), pages 151-165.
- Janine Berg & Dante Contreras, 2002. "Political-Economic Regime and the Wage Curve: Evidence from Chile, 1957-96," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-10, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
- Hoddinott, John, 1996. "Wages and Unemployment in an Urban African Labour Market," Economic Journal, Royal Economic Society, vol. 106(439), pages 1610-26, November.
- Blien, Uwe & Baltagi, Badi H. & Wolf, Katja, 2000.
"The East German Wage Curve: 1993-1998,"
ERSA conference papers
ersa00p196, European Regional Science Association.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004.
"Spatial Heterogeneity and the Wage Curve Revisited,"
ERSA conference papers
ersa04p115, European Regional Science Association.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2006. "Spatial Heterogeneity And The Wage Curve Revisited," Journal of Regional Science, Wiley Blackwell, vol. 46(4), pages 707-731.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "Spatial Heterogeneity and the Wage Curve revisited," Tinbergen Institute Discussion Papers 04-054/3, Tinbergen Institute.
- David Card, 1995. "The Wage Curve: A Review," Working Papers 722, Princeton University, Department of Economics, Industrial Relations Section..
- Barth, Erling & Bratsberg, Bernt & Naylor, Robin A. & Raaum, Oddbjørn, 2002. "Explaining Variations in Wage Curves: Theory and Evidence," Memorandum 03/2002, Oslo University, Department of Economics.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
- Carlos Casacuberta & Marcel Vaillant, 2002. "Trade and wages in Uruguay in the 1990’s," Documentos de Trabajo (working papers) 0902, Department of Economics - dECON.
- Ipek Ilkkaracan & Raziye Selim, 2003. "The role of unemployment in wage determination: further evidence on the wage curve from Turkey," Applied Economics, Taylor & Francis Journals, vol. 35(14), pages 1589-1598.
- David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
- Groot Wim & Mekkelholt Eddie & Oosterbeek, Hessel, 1992. "Further evidence on the wage curve," Economics Letters, Elsevier, vol. 38(3), pages 355-359, March.
When requesting a correction, please mention this item's handle: RePEc:ude:wpaper:1107. 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: (Irene Musio)or (Héctor Pastori)
If references are entirely missing, you can add them using this form.