European Parliament Library

A Cointegration Model for Search Equilibrium Wage Formation

Label
A Cointegration Model for Search Equilibrium Wage Formation
Language
eng
Abstract
In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus value of a realized match. From this perspective, this paper presents an econometric analysis of the influence of labor market flows on wage formation as an alternative to the traditional specification of wage equations in which unemployment represents Phillipscurve or wage-curve effects. The paper estimates a dynamic wage equation for the Netherlands using a cointegration approach. It finds that labor flows, and notably flows from outside the labor market, are important determinants of both short-run and long-run wage setting
Bibliography note
Includes bibliographical references
resource.governmentPublication
international or intergovernmental publication
Literary Form
non fiction
Main title
A Cointegration Model for Search Equilibrium Wage Formation
Nature of contents
dictionaries
Series statement
IMF Working Papers
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. WAGES AS A SHARED SURPLUS OF MATCHES IN THE LABOR MARKET""; ""III. EMPIRICAL IMPLEMENTATION""; ""IV. CONCLUSION""; ""APPENDIX I. DATA APPENDIX""; ""APPENDIX II. UNIT ROOT TESTS""; ""REFERENCES""
Classification
Content
Other version