From Phillips curve to wage curve

Graafland, J.J. (1991): From Phillips curve to wage curve. Published in: De Economist , Vol. 140, No. 4 (1992): pp. 501-514.

Abstract

In most traditional macro-economic models of the Netherlands the wage equation is specified by a Phillips curve, in which wage growth is negatively related to the unemployment rate. This paper shows, however, that wage formation can better be described by the so-called wage curve, in which the wage level instead of wage growth depends negatively on the unemployment rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: Phillips curve; wage curve; wage equation; wage bargaining; tax wedge; unemployment
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J38 - Public Policy; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J32 - Nonwage Labor Costs and Benefits ; Retirement Plans ; Private Pensions; J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J52 - Dispute Resolution: Strikes, Arbitration, and Mediation ; Collective Bargaining; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H39 - Other

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