Institut für Arbeitsmarkt- und Berufsforschung

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Inhaltsbereich: Institut für Arbeitsmarkt- und Berufsforschung

Regional unemployment and wages

Project Number


Head of Project

Project Staff

  • Baltagi, Badi H. (Syracuse University, Department of Economics, Center for Policy Research)
  • Meßmann, Susanne (Bundesagentur für Arbeit, CF 1)
  • Mutl, Jan (EBS Business School, FARE Department)
  • Phan thi Hong, Van
  • Trappmann, Mark
  • Wolf, Katja

Project Start

July 2007

End of Project

April 2021


In 1994, Blanchflower & Oswald claimed to have found an "empirical law of economics" the wage curve, which describes the wage level as a downward-sloping convex curve of the regional unemployment rate. According to their empirical results, the elasticity of wages with respect to regional unemployment is -0.1. This holds especially for the Anglo-Saxon countries. In this project the Western German wage curve is reconsidered using modern econometric techniques. Among others it is planned to take spatial autocorrelation into account.