IDEAS home Printed from https://ideas.repec.org/h/ail/chapts/01-10.html
   My bibliography  Save this book chapter

The Wage Curve and Agglomeration

In: The European Labour Market. Regional Dimensions

Author

Listed:
  • Jens Südekum

    (University of Duisburg-Essen)

Abstract

New Economic Geography models usually abstract from unemployment. By contrast, wage curve models (Blanchflower and Oswald, 1994) imply a negative correlation between regional unemployment and wages, but fail to account for agglomeration effects. Relying upon some stylised facts concerning the EU-15 regions a theoretical model is built combining a wage curve with an increasing returns technology. Large ‘core’ regions turn out having both higher equilibrium wages and lower unemployment rates than peripheral regions. Regional disparities can develop endogenously and labour mobility does not negate the wage curve mechanism, but rather strengthens it.

Suggested Citation

  • Jens Südekum, 2006. "The Wage Curve and Agglomeration," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 10, pages 203-219, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:01-10
    as

    Download full text from publisher

    File URL: http://link.springer.com/chapter/10.1007/3-7908-1680-9_10
    Download Restriction: external link
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Cristiano Perugini & Marcello Signorelli, 2007. "Labour Market Performance Differentials and Dynamics in EU-15 Countries and Regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 209-262, September.

    More about this item

    Keywords

    New Economic Geography; wage curve; increasing returns; regional inequalities.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

    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:ail:chapts:01-10. 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: Lia Ambrosio (email available below). General contact details of provider: https://edirc.repec.org/data/aiellea.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.