Neoclassical labour market dynamics, chaos and the real wage Phillips curve

2007 ◽  
Vol 62 (3) ◽  
pp. 470-483 ◽  
Author(s):  
Luciano Fanti ◽  
Piero Manfredi
Keyword(s):  
Labour Market ◽  
Real Wage ◽  
Phillips Curve ◽  
Market Dynamics ◽  
The Real

scholarly journals The Relationship between Real Wages and Output: Evidence from Pakistan

2000 ◽  
Vol 39 (4II) ◽  
pp. 1111-1126 ◽  
Author(s):  
Afia Malik ◽  
Ather Maqsood Ahmed
Keyword(s):  
Business Cycles ◽  
Interest Rates ◽  
Real Wage ◽  
Phillips Curve ◽  
Labour Supply ◽  
Nominal Wage ◽  
Purchasing Power ◽  
Real Wages ◽  
The Real ◽  
The Relationship

Information on wage levels is essential in evaluating the living standards and conditions of work and life of the workers. Since nominal wage fails to explain the purchasing power of employees, real wage is considered as a major indicator of employees purchasing power and can be used as proxy for their level of income. Any fluctuations in the real wage rate have a significant impact on poverty and the distribution of income. When used in relation with other economic variables, for instance employment or output they are valuable indicators in the analysis of business cycles. There has been a long debate regarding the relationship between real wages and the employment (output). Despite the apparent simplicity, the relationship between real wages and output has remained deceptive both theoretically and empirically. Keynes (1936) viewed cyclical movements in employment along a stable labour demand schedule thus indicating counter cyclical real wages. His deduction is in line with sticky wages and sticky expectations, which augments models like Phillips curve. In these models real wages behaved as counter-cyclical as nominal wages are slow to adjust during recession (decrease in aggregate demand and associated slowdown in price growth). Stickiness of wages or expectations shifts the labour supply over the business cycles [Abraham and Haltiwanger (1995)]. Barro (1990) and Christiano and Eichenbaum (1992) have associated these labour supply shifts with intertemporal labour-leisure substitution. This in response to temporary changes in real interest rates (fiscal policy shocks) could yield counter-cyclical real wages. However, Long and Plosser (1983) and Kydland and Prescott (1982) while studying the real business cycle models highlight on the technology shocks which leads to pro-cyclical real wages.

Mis-Specification and Cyclical Models: The Real Wage and the Phillips Curve

Economica ◽  
1980 ◽  
Vol 47 (188) ◽  
pp. 433 ◽  
Author(s):  
Mark Gersovitz
Keyword(s):  
Real Wage ◽  
Phillips Curve ◽  
The Real

New forms of intra-European migration, labour market dynamics and social inequality in Europe

2014 ◽  
Vol 11 (2) ◽  
pp. 125-136 ◽  
Author(s):  
Roland Verwiebe ◽  
Laura Wiesböck ◽  
Roland Teitzer
Keyword(s):  
Labour Market ◽  
Social Inequality ◽  
Social Stratification ◽  
Labour Markets ◽  
Second Step ◽  
Market Dynamics ◽  
Migration Patterns ◽  
European Continent ◽  
The Past ◽  
European Migration

This article deals mainly with new forms of Intra-European migration, processes of integration and inequality, and the dynamics of emerging transnational labour markets in Europe. We discuss these issues against the background of fundamental changes which have been taking place on the European continent over the past two decades. Drawing on available comparative European data, we examine, in a first step, whether the changes in intra-European migration patterns have been accompanied by a differentiation of the causes of migration. In a second step, we discuss the extent to which new forms of transnational labour markets have been emerging within Europe and their effects on systems of social stratification.

Consumers Preferences, Subsistence and Real Wage

1993 ◽  
Author(s):  
D. Andrews
Keyword(s):  
Political Economy ◽  
Real Wage ◽  
Consumer Preference ◽  
Sharp Contrast ◽  
Index Number ◽  
Neoclassical Theory ◽  
The Real ◽  
Individual Consumer ◽  
Classical Political Economy

In classical political economy, the real wage derives its reality from its association with a given set of products that provides for the subsistence of workers through time. In neoclassical theory the connection between the real wage and a given set of products is broken, because the restriction of workers’ consumption to a particular set of products conflicts with the idea of individual consumer preference. Thus, the ‘reality’ of the real wage in neoclassical theory is grounded differently, in a particular standard of value that can be called an index number standard. The difficulties involved with this construction raise questions about the theoretical adequacy of the notion of real wage itself. In particular, this leads to a conclusion that stands in sharp contrast to the empiricist proclamations of neoclassical theory.

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