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Wages and the Length of the Working Day. An Empirical Test Based on Norwegian Quarterly Manufacturing Data

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  • Nymoen, Ragnar

Abstract

A simple framework is specified which is suitable for testing the relationship between the length of the working day and wages per hour. The relationship is tested on Norwegian manufacturing data, using both dynamic modeling and cointegration techniques. Both methods provide empirical support for a hypothesis of long-run independence of real wages and hours, conditional on constant productivity and unemployment. The results from dynamic modeling confirm that there are significant short-run effects of changes in normal hours, corresponding to the income-compensation schemes usually introduced along with reduction in the length of the working day. Copyright 1989 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 91 (1989)
Issue (Month): 3 ()
Pages: 599-612

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Handle: RePEc:bla:scandj:v:91:y:1989:i:3:p:599-612

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Cited by:
  1. Falch, Nina Skrove & Nymoen, Ragnar, 2011. "The accuracy of a forecast targeting central bank," Economics Discussion Papers 2011-6, Kiel Institute for the World Economy.
  2. Q. Farooq Akram & Ragnar Nymoen, 2006. "Model selection for monetary policy analysis – Importance of empirical validity," Working Paper 2006/13, Norges Bank.
  3. Jennifer Hunt, 1996. "The Response of Wages and Actual Hours Worked to the Reductions of Standard Hours," NBER Working Papers 5716, National Bureau of Economic Research, Inc.
  4. Q. Farooq Akram & Ragnar Nymoen, 2009. "Model Selection for Monetary Policy Analysis: How Important is Empirical Validity?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 35-68, 02.
  5. Kapteyn, A. & Kalwij, A. & Zaidi, A., 2000. "The Myth of Worksharing," Economics Series Working Papers 9932, University of Oxford, Department of Economics.
  6. Baek, Ehung Gi & Oh, Wankeun, 2004. "The short-run production effect of the reduction of working hours," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 123-144, January.

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