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THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION

Year 2011, Volume: 3 Issue: 2, 277 - 285, 01.12.2011

Janina Seputiene

Abstract

The negative relation between wages and unemployment is not doubtable. The bargaining model and effective wages model explain this relationship from the theoretical point of view. While analyzing the relation between unemployment and the rate of change of wages, authors refer to Phillips curve. Without doubt in analyzed relationship authors try to specify it taking additional conditions in concern, for example regional unemployment or qualification of employees. The problem of this research is related with the question: is the strength of the wage growth rate and unemployment relation the same across the European Union countries? The aim of the research is to analyze negative relationship between unemployment and wages from the theoretical point of view and to estimate and compare this relation in the European Union countries

Keywords

Wages Unemployment Wage flexibility

References

  • Akerlof, George, A., Janet L. Yellen (1988), “Fairness and Unemployment” American Economic Review, Vol. 78, pp.44-49.
  • Apergis, Nicholas, Ioannis Theodosiou (2008), “The Employment–Wage Relationship: Was Keynes right after all?” American Review of Political Economy, Vol. 6, No. 1, pp. 40-50.
  • Babecky, Jan, Raul Ramos and Esteban Sanroma (2008), “Meta-Analysis on Microeconomic Wage Flexibility (Wage Curve)”, Sozialer Fortschrit, Vol. 57, No. 10-11, pp.273–279. Barth, Erling, Bernt Bratsberg, Robin A. Naylor, and Oddbjurn Raaum (2002), Explaining wariations in Wage Curves: Theory and Evidence, University of Oslo, Memorandum 3.
  • Blanchflower, David G., Andrew J. Oswald (1995), “An Introduction to the Wage Curve”, Journal of Economic Perspectives, Vol. 3, pp.153–167.
  • Elhorst, J. Paul, Uwe Blien and Katja Wolf (2007), “New Evidence on the Wage Curve. A Spatial Panel Approach”, International Regional Science Review, Vol. 30, No. 2, pp. 173-191. Galdeano, Anna S., Jarkko Turunen (2005), “Real Wages And Local Unemployment In The Euro Area”, European central Bank, Working paper Series No. 471.
  • Ilkkaracan, Ipek, Raziye Selim (2003), “The Role of Unemployment in Wage determination: Further Evidence on the Wage Curve from Turkey”, Applied Economics, Vol. 35, No. 14, pp.1589–1598.
  • Longhi, Simonetta, Peter Nijkamp and Jacques Poot (2006), “Spatial Heterogeneity And The Wage Curve Revisited”, Journal of Regional Science, Vol. 46, No. 4, pp.707–731.
  • McDonald, Ian M., Robert M. Solow (1981), “Wage Bargaining and Employment”, American Economic Review, Vol. 71, No. 5, pp.896–908.
  • Montuenga, Victor, Inmaculada Garcia and Melchor Fernandez (2003), “Wage Flexibility: Evidence from Five EU Countries Based on the Wage Curve”, Economics Letters, Vol. 78, No. 2, pp.74-169.
  • Nijkamp, Peter, Jacques Poot (2005), “The Last Word on the Wage Curve?” Journal of Economic Surveys, Vol. 19, No. 3, pp.421–450.
  • Shapiro, Carl, Joseph E. Stiglitz (1984), “Equilibrium Unemployment as a Worker Discipline Device”, American Economic Review, Vol. 3, pp.433–444.
  • Eurostat (2011), Statistics,
  • http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database,
  • Accessed 6.04.2011].

Year 2011, Volume: 3 Issue: 2, 277 - 285, 01.12.2011

Janina Seputiene

Abstract

References

  • Akerlof, George, A., Janet L. Yellen (1988), “Fairness and Unemployment” American Economic Review, Vol. 78, pp.44-49.
  • Apergis, Nicholas, Ioannis Theodosiou (2008), “The Employment–Wage Relationship: Was Keynes right after all?” American Review of Political Economy, Vol. 6, No. 1, pp. 40-50.
  • Babecky, Jan, Raul Ramos and Esteban Sanroma (2008), “Meta-Analysis on Microeconomic Wage Flexibility (Wage Curve)”, Sozialer Fortschrit, Vol. 57, No. 10-11, pp.273–279. Barth, Erling, Bernt Bratsberg, Robin A. Naylor, and Oddbjurn Raaum (2002), Explaining wariations in Wage Curves: Theory and Evidence, University of Oslo, Memorandum 3.
  • Blanchflower, David G., Andrew J. Oswald (1995), “An Introduction to the Wage Curve”, Journal of Economic Perspectives, Vol. 3, pp.153–167.
  • Elhorst, J. Paul, Uwe Blien and Katja Wolf (2007), “New Evidence on the Wage Curve. A Spatial Panel Approach”, International Regional Science Review, Vol. 30, No. 2, pp. 173-191. Galdeano, Anna S., Jarkko Turunen (2005), “Real Wages And Local Unemployment In The Euro Area”, European central Bank, Working paper Series No. 471.
  • Ilkkaracan, Ipek, Raziye Selim (2003), “The Role of Unemployment in Wage determination: Further Evidence on the Wage Curve from Turkey”, Applied Economics, Vol. 35, No. 14, pp.1589–1598.
  • Longhi, Simonetta, Peter Nijkamp and Jacques Poot (2006), “Spatial Heterogeneity And The Wage Curve Revisited”, Journal of Regional Science, Vol. 46, No. 4, pp.707–731.
  • McDonald, Ian M., Robert M. Solow (1981), “Wage Bargaining and Employment”, American Economic Review, Vol. 71, No. 5, pp.896–908.
  • Montuenga, Victor, Inmaculada Garcia and Melchor Fernandez (2003), “Wage Flexibility: Evidence from Five EU Countries Based on the Wage Curve”, Economics Letters, Vol. 78, No. 2, pp.74-169.
  • Nijkamp, Peter, Jacques Poot (2005), “The Last Word on the Wage Curve?” Journal of Economic Surveys, Vol. 19, No. 3, pp.421–450.
  • Shapiro, Carl, Joseph E. Stiglitz (1984), “Equilibrium Unemployment as a Worker Discipline Device”, American Economic Review, Vol. 3, pp.433–444.
  • Eurostat (2011), Statistics,
  • http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database,
  • Accessed 6.04.2011].
There are 14 citations in total.

Details

Other ID JA94MN29JE
Journal Section Articles
Authors

Janina Seputiene This is me

Publication Date December 1, 2011
Published in Issue Year 2011 Volume: 3 Issue: 2

Cite

APA Seputiene, J. (2011). THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION. International Journal of Social Sciences and Humanity Studies, 3(2), 277-285.
AMA Seputiene J. THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION. IJ-SSHS. December 2011;3(2):277-285.
Chicago Seputiene, Janina. “THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION”. International Journal of Social Sciences and Humanity Studies 3, no. 2 (December 2011): 277-85.
EndNote Seputiene J (December 1, 2011) THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION. International Journal of Social Sciences and Humanity Studies 3 2 277–285.
IEEE J. Seputiene, “THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION”, IJ-SSHS, vol. 3, no. 2, pp. 277–285, 2011.
ISNAD Seputiene, Janina. “THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION”. International Journal of Social Sciences and Humanity Studies 3/2 (December 2011), 277-285.
JAMA Seputiene J. THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION. IJ-SSHS. 2011;3:277–285.
MLA Seputiene, Janina. “THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION”. International Journal of Social Sciences and Humanity Studies, vol. 3, no. 2, 2011, pp. 277-85.
Vancouver Seputiene J. THE ESTIMATION OF THE RELATIONSHIP BETWEEN WAGES AND UNEMPLOYMENT IN THE EUROPEAN UNION. IJ-SSHS. 2011;3(2):277-85.