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Original Articles

Estimation of a regional wage curve and policy implications

Pages 417-419 | Published online: 04 Feb 2009
 

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 R 2 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.

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