The wage curve in the framework of a general regional adjustment model

Abstract

"The article places the wage curve in the context of a more extensive model of regional adjustment procedures. According to the approach it is necessary to differentiate between variables which show convergence characteristics and variables which strive for permanently changed balances following temporary shocks. The subdivision given as a result of the specification of the model is in principal confirmed by means of an empirical longitudinal/cross-sectional analysis at the level of the federal states or regional employment office districts for the period 1960 to 1993. Both the wages and the unemployment rates are assigned to the convergent variables. The estimation of impulse/answer functions on the basis of a vector-autoregressive approach, however, shows a very slow speed of adjustment. The wage formation/unemployment relationship found for the short and medium term does not conflict with the results of literature on wage curves, although the statistical confirmation of the impulse/answer functions is only given in one out of two variants of the estimation." (Author's abstract, IAB-Doku) ((en))

Cite article

Möller, J. (1996): Die Lohnkurve im Rahmen eines allgemeinen regionalen Anpassungsmodells. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 29, No. 3, p. 479-483.