Fluctuations and rigidities in local labor markets, part 1: theory and evidence
Cyclical sensitivity in employment, wages, and hours worked are explored with reference to three industries and eleven US cities over the period 1972 - 1980. Conventional neoclassical discrete-exchange models of the labor market are shown to be inadequate because of marked rigidities in the patterns...
| Main Author: | |
|---|---|
| Format: | Journal article |
| Language: | English |
| Published: |
Pion Ltd.
1983
|
| Subjects: |
| _version_ | 1797070195259342848 |
|---|---|
| author | Clark, G |
| author_facet | Clark, G |
| author_sort | Clark, G |
| collection | OXFORD |
| description | Cyclical sensitivity in employment, wages, and hours worked are explored with reference to three industries and eleven US cities over the period 1972 - 1980. Conventional neoclassical discrete-exchange models of the labor market are shown to be inadequate because of marked rigidities in the patterns of short-run adjustment. Money wages are very stable, being dominated by a long-run trend, and firms tend to adjust hours worked and only then employment in the short run. There are, however, significant interregional variations in these patterns within the same industry. Spectral analysis and tests for periodicities in the patterns of residuals derived from trend-line estimates of money wages confirm a supposition that urban Phillips curves do not exist. The evidence supports the implicit notion of contract theory that continuous employer - worker relationships exist over the business cycle. The question of how useful, in general, this theory might be is left open for the present. |
| first_indexed | 2024-03-06T22:35:30Z |
| format | Journal article |
| id | oxford-uuid:59beb9c5-d2fc-456f-ace6-fa805fb3b27e |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T22:35:30Z |
| publishDate | 1983 |
| publisher | Pion Ltd. |
| record_format | dspace |
| spelling | oxford-uuid:59beb9c5-d2fc-456f-ace6-fa805fb3b27e2022-03-26T17:11:35ZFluctuations and rigidities in local labor markets, part 1: theory and evidenceJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:59beb9c5-d2fc-456f-ace6-fa805fb3b27eEmploymentGeographyEnglishOxford University Research Archive - ValetPion Ltd.1983Clark, GCyclical sensitivity in employment, wages, and hours worked are explored with reference to three industries and eleven US cities over the period 1972 - 1980. Conventional neoclassical discrete-exchange models of the labor market are shown to be inadequate because of marked rigidities in the patterns of short-run adjustment. Money wages are very stable, being dominated by a long-run trend, and firms tend to adjust hours worked and only then employment in the short run. There are, however, significant interregional variations in these patterns within the same industry. Spectral analysis and tests for periodicities in the patterns of residuals derived from trend-line estimates of money wages confirm a supposition that urban Phillips curves do not exist. The evidence supports the implicit notion of contract theory that continuous employer - worker relationships exist over the business cycle. The question of how useful, in general, this theory might be is left open for the present. |
| spellingShingle | Employment Geography Clark, G Fluctuations and rigidities in local labor markets, part 1: theory and evidence |
| title | Fluctuations and rigidities in local labor markets, part 1: theory and evidence |
| title_full | Fluctuations and rigidities in local labor markets, part 1: theory and evidence |
| title_fullStr | Fluctuations and rigidities in local labor markets, part 1: theory and evidence |
| title_full_unstemmed | Fluctuations and rigidities in local labor markets, part 1: theory and evidence |
| title_short | Fluctuations and rigidities in local labor markets, part 1: theory and evidence |
| title_sort | fluctuations and rigidities in local labor markets part 1 theory and evidence |
| topic | Employment Geography |
| work_keys_str_mv | AT clarkg fluctuationsandrigiditiesinlocallabormarketspart1theoryandevidence |