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The long-run determinants of UK wages, 1860–2004

Abstract:
As it is almost 50 years since the Phillips curve, we analyze an historical series on UK wages and their determinants [see Phillips, A.W.H., 1958. The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861–1957. Economica, 25, 283–299]. Huge changes have occurred over this long-run, so congruence is hard to establish: real wages have risen more than 6 fold, and nominal 500 times; laws, technology, wealth distribution, and social structure are unrecognizably different from 1860. We investigate: wage rates and weekly earnings; real versus nominal wages; breaks over 1860–2004; non-linearities, including Phillips’ non-linear response to unemployment; ‘trade union power’ and unemployment benefits; and measures of excess demand, where workers react more to inflation when it rises.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1016/j.jmacro.2007.08.018

Authors


More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Economics
Role:
Author
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Economics
Sub department:
EMOD
Role:
Author


Publisher:
Elsevier
Journal:
Journal of Macroeconomics More from this journal
Volume:
31
Issue:
1
Pages:
5-28
Publication date:
2009-03-01
Acceptance date:
2007-08-21
DOI:
ISSN:
0164-0704


Keywords:
Pubs id:
pubs:293936
UUID:
uuid:4b8f0161-5fbb-4ec0-b376-40e533fc2771
Local pid:
pubs:293936
Source identifiers:
293936
Deposit date:
2016-12-16

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