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Real-Wage Determination and Labour Market Policies: The Swedish Experience

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Author Info
Calmfors, Lars
Forslund, Anders

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Abstract

It is a common view that labor market programs reduce unemployment and restrain wages by increasing the competition for jobs. The Swedish case is often advanced as a blueprint to follow. This article questions the conventional wisdom on the Swedish labor-market policies. It finds empirical evidence in favor of the hypothesis that job creation and training programs weaken the incentives for wage restraint. As a consequence, it appears likely that labor-market programs have strong crowding-out effects on regular employment. Copyright 1991 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 101 (1991)
Issue (Month): 408 (September)
Pages: 1130-48
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Handle: RePEc:ecj:econjl:v:101:y:1991:i:408:p:1130-48

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  2. Tuomas Pekkarinen, 2001. "The wage curve : evidence from the Finnish metal industry panel data," Finnish Economic Papers, Finnish Economic Association, vol. 14(1), pages 51-60, Spring. [Downloadable!]
  3. Anders Forslund & Nils Gottfries & Andreas Westermark, 2006. "Real and Nominal Wage Adjustment in Open Economies," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  4. Calmfors, Lars & Forslund, Anders & Hemstroem, Maria, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  5. Rodseth,A. & Nymoen,R., 1999. "Nordic wage formation and unemployment seven years later," Memorandum 10/1999, Oslo University, Department of Economics. [Downloadable!]
  6. Johansson, Åsa, 2002. "The Interaction Between Labor Market Policy and Monetary Policy: An Analysis of Time Inconsistency Problems," Seminar Papers 708, Stockholm University, Institute for International Economic Studies. [Downloadable!]
  7. Adriana Marshall, 2004. "Labour market policies and regulations in Argentina, Brazil and Mexico: Programmes and impacts," Employment strategy papers 2004-13, International Labour Office. [Downloadable!]
  8. J Richardson, 1997. "Wage Subsidies for the Long Term Unemployed: A Search Theoretic Analysis," CEP Discussion Papers dp0347, Centre for Economic Performance, LSE. [Downloadable!]
  9. Andrea Bassanini & Romain Duval, 2006. "The Determinants of Unemployment across OECD Countries," Post-Print halshs-00120584_v1, HAL. [Downloadable!]
  10. J Richardson, 1997. "Can Active Labour Market Policy Work? Some Theoretical Considerations," CEP Discussion Papers dp0331, Centre for Economic Performance, LSE. [Downloadable!]
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  12. Gemma Garcia, 1998. "Unemployment and vacancies in Spain: Labour mismatch and active labour market policy," ERSA conference papers ersa98p182, European Regional Science Association. [Downloadable!]
  13. Hujer, Reinhard & Caliendo, Marco & Zeiss, Christopher & Blien, Uwe, 2002. "Macroeconometric evaluation of active labour market policies in Germany - a dynamic panel approach using regional data," ERSA conference papers ersa02p225, European Regional Science Association. [Downloadable!]
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  14. Alan Krueger & Jorn-Steffen Pischke, 1997. "Observations and Conjectures on the U.S. Employment Miracle," Working Papers 769, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  15. Musgrave, Ralph S., 2009. "Workfare: a marginal employment subsidy for public and private sectors (2nd edition)," MPRA Paper 14206, University Library of Munich, Germany. [Downloadable!]
  16. Anders Forslund & Alan Krueger, 1994. "An Evaluation of the Swedish Active Labor Market Policy: New and Received Wisdom," Working Papers 711, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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