A Re-evaluation of the Relation between Wages and Unemployment in the United Kingdom.
This paper examines the long-run or equilibrium relationship between wages, prices and the unemployment rate in the United Kingdom, using annual data covering the period 1860-1999. Using Johansen's maximum likelihood method of testing for cointegration, two long-run relations are found in a small system of four variables. The first relation depicts the co-movement of the level of real wages adjusted for productivity, together with the unemployment rate and the rate of inflation. The second relation shows the co-movement between the rate of inflation and deviations of productivity from its trend growth. Copyright 2001 by The London School of Economics and Political Science
Year of publication: |
2001
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Authors: | Shadman-Mehta, Fatemeh |
Published in: |
Economica. - London School of Economics (LSE). - Vol. 68.2001, 272, p. 567-85
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Publisher: |
London School of Economics (LSE) |
Saved in:
freely available
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