Social SciencesEconomicsLabor EconomicsMacroeconomicsMonetary EconomicsLabor Market DynamicsUnemploymentWage DeterminationPhillips ModelUnemployment Dynamics
Professor Phillips has attempted to show' that the rate of change of money wage rates is explained by the level of unemployment and the rate of change of unemployment. The demonstration is impressive, yet I cannot help feeling that he has not quite got the wage series into orbit, or, if it is in orbit, that it is revolving round the wrong planet. My contention will be that his statistical material is not appropriate for the support of his hypothesis; that different wage and unemployment series will yield significantly different results; and that, even if the imperfections of the material are disregarded, Professor Phillips reads more into his evidence than it can in fact sustain.