account for the cost of higher wages as mobility allows them to partially shift the burden of unemployment to other UIs. A …

The paper estimates how wages respond to changes in regional unemployment using detailed Swedish micro data. The study … is set in an economy with close to complete union coverage where real wages have grown continuously in all parts of the … estimated elasticity of wages. Wage adjustments are larger for employees with high unemployment risk and for new hires entering …

find work, and prefer to do so even at wages below the prevailing wage rather than remain unemployed. However, they rarely …