Resumen de Wage curve in dual labor markets: cross-sectional evidence from Japan
Using a threshold regression model, we find that the wage-unemployment relationship in Japan depends on the degree of labor market duality. The unemployment elasticity of wages is negative for the group with a lower degree of duality and, therefore, the Japanese wage curve holds for that group. However, the wage-unemployment relationship is reversed if the share of non-regular workers exceeds approximately 30%. Therefore, the Japanese wage curve does not hold for the group with a higher degree of duality, and alternative theories such as compensating differentials may be useful to explain this group
