Arango, Luis Eduardo; Posada, Carlos Esteban - Banco de la Republica de Colombia
The colombian urban unemployment rate grew dramatically over the last six years. At the same time the real wage also … had a sharp increase: The empirical evidence supports the hypothesis that an exogenous increase in the real wage was a … cause of the unemployment growth. The long-run elasticity suggest that one percent increase of the real wage index increases …