An efficiency wage approach to reconciling the wage curve and the Phillips curve

Abstract

This study develops an efficiency wage model that generates a wage curve at the regional level and a Phillips curve at the national level, under the assumption that workers' efficiency depends on both regional and aggregate labor market conditions. An equation relating wages to unemployment and lagged wages is derived from the profit-maximizing behavior of firms, and it is demonstrated that the coefficient on lagged wages is less than 1 with regional data but equals 1 with aggregate data. In addition, there is an equilibrium relationship between unemployment and wages at the regional level, but not at the aggregate level.

The price-price Phillips curve in small open economies and monetary unions: theory and empirics

“…Note that for n = 1, (19) and (21) coincide with (17). The di¤erence between (21) and (17) consists in both the unemployment rate multiplier and the presence of an additional shifter, namely the deviation of foreign output from steady state.…”

“…On this basis, one can derive from (17) a price-price Phillips curve whose slope is a multiple of the coe¢ cient of absolute deviations of the unemployment rate from steady state in (17) :…”

“…Building on Campbell (2006Campbell ( , 2008aCampbell ( and 2008b, Campbell (2010a) has recently proposed a derivation of the Phillips curve alternative to the New-Keynesian and sticky information ones by adopting an e¢ ciency wages model with imperfect information. This Phillips curve was named the price-price Phillips curve.…”

Una explicación a la curva de salarios

“…Si bien esta demanda es un resultado estándar, difiere de la presentada por Campbell (2008), en la cual se asume una demanda de producto independiente del salario real. La (11) es la oferta de trabajo la cual es inelástica al salario real.…”

“…Es importante resaltar que aun si el mercado de trabajo ofreciera elementos para determinar el salario, sería fijado independiente de la oferta y demanda de trabajo, pues el productor lo determina por medio de la condición de Solow. 6 En Noriega (2001) se argumenta que el principal resultado del mercado son los precios y las asignaciones que derivan de estos, debido a que el mercado de trabajo no es capaz de determinar el salario real. Así, entonces, no se puede considerar como un mercado, es decir, el mercado de trabajo se forma en apariencia (existe oferta y demanda de trabajo), pero no funciona como tal, es decir, la interacción de la oferta y demanda de trabajo no determina el salario real.…”