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A NOTE ON REAL WAGE RIGIDITY AND STATE UNEMPLOYMENT RATES *
Author(s) -
Payne James E.
Publication year - 1995
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1995.tb01261.x
Subject(s) - rigidity (electromagnetism) , unemployment , economics , wage , proxy (statistics) , labour economics , unemployment rate , empirical evidence , affect (linguistics) , econometrics , macroeconomics , psychology , mathematics , statistics , philosophy , structural engineering , epistemology , communication , engineering
This paper extends the research of Hyclak and Johnes (1989) in analyzing the relationship between the rigidity in real wages and state unemployment rates. It presents evidence contrary to the empirical findings of Hyclak and Johnes in that measures of real wage rigidity are not robust over time in explaining changes in state unemployment rates. Moreover, an alternative proxy accounting for divergent growth patterns across states does not significantly affect changes in state unemployment rates.