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The Wage Curve in Chile

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Abstract

This paper analyses the relationship between an individual’s wage and unemployment in her region and industrial sector —the Wage Curve— in Chile from the 1990s onwards. It uses a host of national survey evidence, including the CASEN (Encuesta de Caracterización Socieconómica Nacional) and ESI (Encuesta Suplementaria de Ingreso) surveys. The evidence clearly points to the existence of a Wage Curve in Chile. The coefficient that relates individual wage with local unemployment rate is –0.04, and –0.13 in the case of the sectoral unemployment rate, both similar to those found in studies for other economies. Moreover, after 1999 the responsiveness of wages to local/sectoral unemployment rates seems to have increased.

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  • Pablo García & Paulina Granados, 2005. "The Wage Curve in Chile," Working Papers Central Bank of Chile 320, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:320
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_320.pdf
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