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Increase in wages from a 1 percentage-point decline in the unemployment rate, by gender

Source: Authors' analysis of Current Population Survey Outgoing Rotation Group microdata for 1979 to 2007. Analysis based on Katz and Krueger (1999)

Updated July 10, 2012

Documentation and methodology

Estimates use Current Population Survey Outgoing Rotation Group microdata (see Appendix B), and are computed based on a model employed by Katz and Krueger (1999). Annual changes in log wages are regressed on unemployment, lagged log-changes in the CPI-U-RS (but, following Katz and Krueger the coefficient on this is constrained to equal 1), lagged productivity growth, and dummies for 1989–1995, 1996–2000, and 2001–2007 (excluded period is 1979–1988). The sample covers the years 1979–2007.

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