The Influence of Labour market dynamics on Wage Formation
نویسنده
چکیده
This paper surveys empirical Phillips curve and wage curve models for The Netherlands. It provides a simple theoretical model with which an appropriate specification for Phillips curve and wage curve models can be derived, which reckons with labour market tightness and fits into a flow model of the labour market. We find that in particular the short term unemployment-vacancy ratio and flows from unemployment to employment affect the wage formation process.
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