S. W. Black, H. H. Kelejian; The Formulation of the Dependent Variable in the Wage Equation1, The Review of Economic Studies, Volume 39, Issue 1, 1 January 1972

[Two stage least squares methods are used to estimate a postwar quarterly model of U.S. labor demand, supply, and wage adjustment. Analytical techniques are used to derive the long-run equilibrium properties of the estimated model. Short run properties are obtained by approximating the model in the form of two simultaneous difference equations. Simulation methods show the response of the model to an increase in the size of the armed forces.]