Wage curve versus Phillips curve: a microeconomic estimation for the Spanish case
José Aixalá
Carmen Pelet*

Abstract
The aim of this paper is to test for the existence of a wage curve for the Spanish economy between 1994 and 1996. The results confirm the negative relation between the level of nominal wages and the unemployment rate in local labour markets. We also analyse whether there is a relation between the local unemployment rate and wage changes, as the Phillips curve describes, with disaggregated data, introducing the lagged dependent variable into the specification and checking the value of its coefficient. The results do not permit us to affirm that there is evidence of a Phillips curve relation.

Key Words: Wage curve, Phillips curve, panel data.
JEL Classification: J31, J60, J69.

* Department of Applied Economics, University of Zaragoza (jaixala@unizar.es) (cpelet@unizar.es).

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