Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5055180 | Economic Modelling | 2012 | 10 Pages |
Abstract
The main database is a random sample of 974,179 employees observed over the period 1980-2004 and covering 326 NUTS3 units (districts). This rich data set is used to estimate a dynamic wage curve according to the two-step approach of Bell et al. (2002). In the first step one controls for individual heterogeneity and in the second step one allows for spatial effects of unemployment across regions on wages. We check the sensitivity of this wage elasticity to various spatial weight matrices as well as allowing for the endogeneity of unemployment. We also estimate the wage elasticity for various population groups.
Related Topics
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Economics and Econometrics
Authors
Badi H. Baltagi, Uwe Blien, Katja Wolf,