changing local labour market conditions. For many countries and periods, an inverse relationship between wages and unemployment … due to the use of aggregate unemployment rates and other labour market characteristics for groups. A maximum likelihood …

local labour market conditions. For many countries, an inverse relationship between wages and local unemployment rates has … been found. In their book, The Wage Curve, Blanchflower and Oswald argued that the unemployment elasticity of pay is around … aggregate unemployment rates. A maximum likelihood method and a trimming procedure are used to correct for these biases. Both …