01683cas a2200241 a 4500 AALejournalIMF002964 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451851625 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. A Cointegration Model for Search Equilibrium Wage Formation. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus value of a realized match. From this perspective, this paper presents an econometric analysis of the influence of labor market flows on wage formation as an alternative to the traditional specification of wage equations in which unemployment represents Phillipscurve or wage-curve effects. The paper estimates a dynamic wage equation for the Netherlands using a cointegration approach. It finds that labor flows, and notably flows from outside the labor market, are important determinants of both short-run and long-run wage setting. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2004/092 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/092/001.2004.issue-092-en.xml IMF e-Library