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Estimation of a regional wage curve and policy implications

By Yu Hsing

Abstract

Based on all the metropolitan statistical areas in the state of Texas during 2002-2004, this study finds that the real wage rate and the unemployment rate have a significant negative relationship. However, the value of R2 is relatively low. Policy implications are that the efficiency wage model may be used to explain the outcome and that there are other factors explaining the behaviour of wages.

DOI identifier: 10.1080/13504850601018601
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