ISSN:
1432-0592
Source:
Springer Online Journal Archives 1860-2000
Topics:
Architecture, Civil Engineering, Surveying
,
Geography
,
Economics
Notes:
Abstract There is a growing body of literature that analyzes the Phillips curve model in the context of subnational labor markets. To date the results of these analyses have been mixed. This paper estimates a tiered version of a modified Phillips curve for local labor markets in the midwest region of the U.S. The purpose of the model is to test the significance of a wage-unemployment trade-off at the metropolitan level, and to determine the significance of a downward wage transmission effect through the tiers of an urban hierarchy. Using the method of ordinary least squares, the results provide no evidence of a significant Phillips curve type of relationship between wages and unemployment at the local level. However, the wage transmission effect from the upper order cities of the hierarchy to the lower order cities appears to be a significant determinant of the rate of change of wages in metropolitan areas.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01453550
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