The wage curve within and across regions: new insights from a pairwise view of US states

Publicado en

  • Empirical Economics


  • The novel application of a pairwise autoregressive distributed lag (ARDL) approach provides new insights into the regional wage–unemployment rate relationship. Using this approach, the short- and long-run wage curve slope for each US state is potentially inversely related to the unemployment rate in all other states. In terms of the oft-cited Blanchflower and Oswald elasticity, there is mixed evidence in support of a $$-\,0.1$$ - 0.1 wage curve slope. We find that the pairwise wage curve slope is driven by factors that include state-level home-ownership and education attainment. Our findings suggest that short-run wage flexibility decreased during the period following the Great Recession.

fecha de publicación

  • 2022

Líneas de investigación

  • ARDL
  • Home-ownership
  • Pairwise
  • Unemployment rate
  • Wage curve
  • Wages


  • 62


  • 5