The Birth of the "Wage Curve" in Hungary, 1989-1995
The paper investigates linkages between regional unemployment and regional wages in Hungary. The evolution of a 'wage curve' is followed from 1989 to 1995 using surveys of employees, employers and unemployed job seekers. Cross-section earnings functions are estimated to measure the impact of unemployment on wages. Data on enterprise performance, capital inflows and labour mobility are used to evaluate the scope for change.
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