Testing for a U-shaped curve: a response
Article Abstract:
Empirical research casts doubt on J.G. Sessions' notion of a U-shaped wage curve caused by the effect of unemployment on industrial collective bargaining. A comparison of US Current Population Survey data 1963-1987 and regional unemployment data for the same period show no evidence of the U-shape effect described by Sessions. The data do support the position that a negatively-sloped non-linear relationship exists between wages and regional unemployment.
Publication Name: Scandinavian Journal of Economics
Subject: Economics
ISSN: 0347-0520
Year: 1993
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An introduction to the wage curve
Article Abstract:
The study reveals a relation between pay and unemployment. The depiction on a graph with the level of employment on the horizontal axis and the level of wages on the vertical axis reveals that if a region experiences an increase in unemployment in a specific year, those living there will have a reduction in the wages in that year. This wage curve holds internationally, as shown by an analysis of 12 countries, including the USA, Europe and South Korea.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1995
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Time to ditch the NAIRU
Article Abstract:
The use of NAIRU (nonaccelerating inflation rate of unemployment) in the economic profession is erroneous due to various aspects. First, several unresolved theoretical questions have been raised by the concept of 'natural rate of unemployment.' Second, the foundation of the proposed vertical Phillips curve is weak. Third, the application of this concept in policymaking has created minimal benefits and disastrous effects.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1997
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