01933cas a2200241 a 4500 AALejournalIMF008843 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451857535 1018-5941 BD-DhAAL BD-DhAAL Thomas, Alun. The Response of Wages and Labor Supply Movements to Employment Shocks Across Europe and the United States / Alun Thomas. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (30 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 This paper assesses the responsiveness of wages and labor force movements to employment shocks across British and U.S. regions and across Europe using a multivariate vector autoregression technique. The paper finds inflexible real wages in all three areas in that each area's real wage responds very little to employment shocks. However, the response of the labor force to employment shocks is much greater in the United States compared to Europe. The strong labor force response in the United States prevents any persistence in relative regional unemployment rates whereas the lack of mobility in Europe results in persistent unemployment rate differentials across British regions and European nations. Europe must therefore adopt measures to reduce barriers to immobility if it is to succeed in moderating the persistence in relative unemployment rates. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1994/158 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/158/001.1994.issue-158-en.xml IMF e-Library