The aggregation hypothesis (the nation as a whole would be better off if any given level of aggregate demand were more evenly distributed among regional labor markets) is tested here by using regional Phillips curves. Regional unemployment - inflation trade-offs are estimated using the Lipsey-Hansen derivation of the Phillips curve. These regional curves are used to determine what redistribution of jobs among regions would be necessary in order to minimize national wage inflation. This paper examines the validity of regional "wage leadership" for Dutch provinces, and details the Lipsey-Hansen derivation of the Phillips curve. The empirical results of the indirect estimation of the regional Phillips curves (using this derivation) are reported, and the implications of a wage inflation minimizing policy for job reallocation are shown.

  • Supplemental Notes:
    • Proceedings of Seminar E, Urban and Regional Models for Public Policy Analysis, Summer Annual Meeting, University of Warwick, England, July 1975.
  • Corporate Authors:

    Planning and Transport Res and Computation Co Ltd

    167 Oxford Street
    London W1R 1AH,   England 
  • Authors:
    • van Duijn, J J
  • Publication Date: 1975-7

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Filing Info

  • Accession Number: 00149521
  • Record Type: Publication
  • Report/Paper Numbers: Proceeding
  • Files: TRIS
  • Created Date: Mar 30 1977 12:00AM