26 NUTS-2 regions over the period 2005-2008. When the local unemployment rate is treated as predetermined, there is … evidence in favor of the wage curve only for younger and female workers. However, if the lagged unemployment rate is used as an … instrument for current unemployment rate, we find an unemployment elasticity of -0.099. We also find a higher elasticity for …

local labour market is in close proximity of other labour markets, a local shock that increases unemployment may not lead to … lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be … with other regions. These hypotheses are confirmed by means of an estimation of wage curves with data for 327 regions of …

. According to their empirical results, the elasticity of wages with respect to regional unemployment is -0.1. This holds … one should account for wage dynamics. The unemployment elasticity is significant but relatively small: only between -0 …

, the wages of informal workers are more sensitive to the unemployment rates of the same region and other regions than …

, the wages of informal workers are more sensitive to the unemployment rates of the same region and other regions than …

I argue in this paper that the estimation of wage curves and NAWRUs at the country level suffers from spatial …, compared to estimating at the underlying regional level. The distribution of regional unemployment rates within countries over … time is not mean-scaled. Regions with low unemployment rates are the main drivers of changes in aggregate unemployment. The …

that for women low-wage jobs can serve as stepping stones out of unemployment and are to be preferred to staying unemployed …

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 … unemployment rates than peripheral regions. Regional disparities can develop endogenously and labour mobility does not negate the …

panel data set (the ECHP) to appraise wage flexibility. Whereas typical estimation concentrates solely on the relationship … between current wages and current unemployment rate, we also consider the influence of lagged values of unemployment rates … -the unemployment rate at the moment of hiring, and the minimum unemployment rate since the moment of hiring- to take into …