This article summarizes evidence for the existence of a wage curve – a downward-sloping relationship between the level of pay and the local unemployment rate – in modern micro data. At the time of writing, the curve has been found in 40 nations. Its elasticity is approximately −0.1.
KeywordsLabour economics Microfoundations Phillips curve Phillips, A. W. Power laws Unemployment Wage curve
We thank Bruce Weinberg for helpful suggestions.
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