Wage dynamics: reconciling theory and evidence
Article Abstract:
A study was conducted to analyze how to reconcile the empirical Phillips-curve relation and the theoretical wave-curve relation. The condition under which one can go from the theoretical relation to a wage Phillips-curve specification matches the empirical evidence was examined. The presence of an error correction term in macroeconometric wage relations for most European economies was then discussed. Results indicated the importance of a better understanding of the determinants of reservation wages and of firm-specific rents in wage setting in both the US and Europe.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1999
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The high-pressure U.S. labor market of the 1990s
Article Abstract:
An explanation why the unemployment rate eight years into the ongoing expansion is 0.8% lower than at the peak of the last expansion and 1.4% lower than at the expansion before that is presented. The decline of the nonaccelerating-inflation rate of unemployment by 1.2% since the mid-1980s is also discussed. It has been observed that the reduction in unemployment has been caused by demographic shifts and the rise of labor market intermediaries.
Publication Name: Brookings Papers on Economic Activity
Subject: Economics
ISSN: 0007-2303
Year: 1999
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What we know and do not know about the natural rate of unemployment
Article Abstract:
Friedman and Phelp's development of the concept on the 'natural rate of unemployment' has been the subject of various economic research. Since the late 1960's, researchers have made progress by discovering the existence of 'frictional unemployment' and the factors that determine frictional levels. However, studies regarding the quantitative determinants of the natural rate have lagged behind.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1997
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