New Economic Geography models usually abstract from unemployment. By contrast, wage curve models (Blanchflower and Oswald, 1994) imply a negative correlation between regional unemployment and wages, but fail to account for agglomeration effects. Relying upon some stylised facts concerning the...

This paper examines the Turkish wage curve using individual data from the Household Labor Force Survey including 26 NUTS-2 regions over the period 2005–2008. We find an unemployment elasticity of −0.099, with a higher elasticity for younger, less educated, less experienced and female workers.

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....

Building on Layard and Jackman's framework, we propose a simple model to analyse the relation between labour productivity and unemployment regional differentials in Italy and present some panel data evidence to support the theoretical predictions of the model. The empirical analysis strongly...

Summary It is commonly known that every economy is faced with the problem of unevenly distributed labour demand changes across industries, occupations and regions. In competitive labour markets flexible wages and the mobility of labour would lead to a new equilibrium distribution of wages and...

It is commonly known that every economy is faced with the problem of unevenly distributed labour demand changes across industries, occupations and regions. In competitive labour markets flexible wages and the mobility of labour would lead to a new equilibrium distribution of wages and...

Standard economic models suggest that adverse demand shocks will lead to bigger employment losses if institutional factors like minimum wages or trade unions prevent real wages from declining. Some analysts have argued that this insight explains the dichotomy between the United States, where...

Recent studies found evidence for nominal wage rigidity during periods of relatively high nominal GDP growth. It has been argued, however, that in an environment with low nominal GDP growth, when nominal wage cuts become customary, workers’ opposition to nominal cuts would erode and, hence,...

Membership in the monetary union imposes higher demands on factor market flexibility, since neither the exchange rate nor monetary policies can be used to deal with country-specific shocks. In this paper we assess the ability of the twelve new EU member states (NMS-12) to dampen the impact of...