Job Competition and the Wage Curve

22 Pages Posted: 1 Mar 2010

See all articles by Simonetta Longhi

Simonetta Longhi

University of Essex - Institute for Social and Economic Research (ISER); Institute for the Study of Labor (IZA); Tinbergen Institute

Abstract

The wage curve literature consistently finds a negative relationship between regional unemployment rates and regional wages; the most widely accepted theoretical explanations interpret the unemployment rate as a measure of job competition. This paper proposes new ways of measuring job competition, alternative to the unemployment rate, and finds that the negative relationship still holds when job competition is measured following the job search literature. While for men the wage impact of the theoretically-based measures of job competition is rather similar to the wage impact of the unemployment rate, for women the difference is substantial.

Keywords: wage curve, unemployment, on-the-job search

JEL Classification: J31, R23

Suggested Citation

Longhi, Simonetta, Job Competition and the Wage Curve. IZA Discussion Paper No. 4777. Available at SSRN: https://ssrn.com/abstract=1560904

Simonetta Longhi (Contact Author)

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Register to save articles to
your library

Register

Paper statistics

Downloads
46
Abstract Views
361
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information