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

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

Kaynakça

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