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Is there a Wage Curve with Regional Real Wages?

Author

Listed:
  • Rokicki, Bartlomiej

    (Warsawa University)

  • Blien, Uwe

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Bamberg)

  • Hewings, Geoffrey J. D.

    (University of Illinois)

  • Phan thi Hong, Van

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"Do wages react to regional unemployment, as proposed by the theory behind the regional wage curve, if regional price differences are taken into account? This paper applies regional price indexes to assess the wage curve, whereas in the literature only nominal wages are used for wage curve regressions. In order to test the impact of regional prices on the wage curve we apply a variety of methodological approaches. With individual data from the US Census and the Polish Labor Force Survey we find a wage curve. However, in both countries, the local unemployment elasticity and spatial spillovers decrease significantly once regional price deflators are applied." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Rokicki, Bartlomiej & Blien, Uwe & Hewings, Geoffrey J. D. & Phan thi Hong, Van, 2020. "Is there a Wage Curve with Regional Real Wages?," IAB-Discussion Paper 202017, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202017
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    References listed on IDEAS

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    More about this item

    Keywords

    Polen ; USA ; Einkommenseffekte ; internationaler Vergleich ; Lohnkurve ; Preisniveau ; Reallohn ; regionale Disparität ; regionaler Arbeitsmarkt ; Arbeitslosenquote ; 2000-2015;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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