Title

The Wage Curve: A Review

Author(s)

David Card David Card (Princeton University)

Abstract

In The Wage Qurve, David G. Blancflower and Andrew J. Oswald argue that there is a fundamental negative relation between wages and the unemployment rate in a worker's local labor market. Blancflower and Oswald use large-scale micro data sets to estimate this relation for the United States, Britain, and 10 other countries. I review their empirical methods and findings, and provide some further evidence on the nature of the wage curve relationship in the United States. I conclude that there is a strong statistical correlation between rates of pay and local unemployment, although the interpretation of this correlation remains unresolved.

Creation Date

1995-02

Section URL ID

IRS

Paper Number

343

URL

https://dataspace.princeton.edu/bitstream/88435/dsp01pn89d659s/1/343.pdf

File Function

Jel

B16, B19

Keyword(s)

wage curve, local labor markets, wage determination

Suppress

false

Series

1