Reconciling the wage curve and the phillips curve

Journal ar
Journal of Economic Surveys
  • Volumen: 19
  • Número: 5
  • Fecha: 01 December 2005
  • Páginas: 735-765
  • ISSN: 09500804 14676419
  • Source Type: Journal
  • Document Type: Article
The wage curve is the negative relationship that links wage levels to the unemployment rate. It fits accurately with modern non-competitive labour-market models, but goes against a Phillips-curve modelling, because the latter ties wage growth to the unemployment rate. In this article, we present a comprehensive review of these non-competitive models, highlighting recent contributions that try to eliminate the possible 'gap' that exists between the concepts of the wage curve, on the one hand, and the Phillips curve, on the other. © 2005 Blackwell Publishing Ltd,.

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