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Center for Policy Research

Wage Curve

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Full-Text Articles in Social and Behavioral Sciences

The Spatial Polish Wage Curve With Gender Effects: Evidence From The Polish Labor Survey, Badi H. Baltagi, Bartlomiej Rokicki Aug 2014

The Spatial Polish Wage Curve With Gender Effects: Evidence From The Polish Labor Survey, Badi H. Baltagi, Bartlomiej Rokicki

Center for Policy Research

This paper reconsiders the Polish wage curve using individual data from the Polish Labor Force Survey (LFS) at the 16 NUTS2 level allowing for spatial spillovers between regions. In addition it estimates the total and gender-specific regional unemployment rate elasticities on individual wages. The paper finds significant spatial unemployment spillovers across Polish regions. In addition, it finds that the results for the Polish wage curve are sensitive to gender-specific regional unemployment rates. This is especially true for women.


The Turkish Wage Curve; Evidence From The Household Labor Force Survey, Badi H. Baltagi, Yusuf Soner Baskaya, Timur Hulagu Sep 2011

The Turkish Wage Curve; Evidence From The Household Labor Force Survey, Badi H. Baltagi, Yusuf Soner Baskaya, Timur Hulagu

Center for Policy Research

This paper examines the Turkish wage curve using individual data from the Household Labor Force Survey (HLFS) including 26 NUTS-2 regions over the period 2005 - 2008. When the local unemployment rate is treated as predetermined, there is evidence in favor of the wage curve only for younger and female workers. However, if the lagged unemployment rate is used as an instrument for current unemployment rate, we find an unemployment elasticity of -0.099. We also find a higher elasticity for younger, less educated, low experienced workers than for older, more educated and more experienced workers. Another important finding is that …


A Dynamic Spatial Panel Data Approach To The German Wage Curve, Badi H. Baltagi, Uwe Blien, Katja Wolf Sep 2010

A Dynamic Spatial Panel Data Approach To The German Wage Curve, Badi H. Baltagi, Uwe Blien, Katja Wolf

Center for Policy Research

A wage curve is a decreasing function of wages on the regional unemployment rate. Most empirical studies on the wage curve ignore possible spatial interaction effects between the regions which are the primary units of research. This paper reconsiders the western German wage curve with a special focus on the geography of labour markets. Spillovers between regions are taken into account. The paper tests whether the unemployment rate in the larger surrounding region also affects wages. In addition, agglomeration effects and effects of local monopsony are assessed. The main data base is a random sample of 974,179 employees observed over …