Wallis, G.;
(2002)
The effect of skill shortages on unemployment and real wage growth: a simultaneous equation approach.
Presented at: The 2003 Royal Economic Society Annual Conference, University of Warwick, UK.
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Abstract
This paper attempts to quantify the effect of skill shortages on the UK labour market by developing a simultaneous equation model of unemployment and real wage growth. The model is developed following a structural approach based on a priori economic information and is initially estimated using a two-stage least squares procedure. The model is also estimated using Zellner's seemingly unrelated regressions estimation technique, with similar results. It is shown that skill shortages have a positive effect on real wage growth and a negative effect on unemployment, with both these effects economically and statistically significant.
| Type: | Conference item (Presentation) |
|---|---|
| Title: | The effect of skill shortages on unemployment and real wage growth: a simultaneous equation approach |
| Event: | The 2003 Royal Economic Society Annual Conference |
| Location: | University of Warwick, UK |
| Dates: | 7-9th April 2003 |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | http://www.warwick.ac.uk/res2003/papers/abstracts-... |
| Language: | English |
| Keywords: | Skill shortages, unemployment, wages, 2SLS |
| UCL classification: | UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/18595 |
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