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The Determination of Wages, Employment, and Work Hours in an Economy with Centralised Wage-Setting: Sweden, 1950-83

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  • Pencavel, John
  • Holmlund, Bertil

Abstract

A key component of recent explanations for the growth in unemployme nt in Western Europe is a negative relation between wage rates and employment. This paper examines the evidence for such a relationship for Swedish manufacturing industry and also investigates the corresponding movements of hours of work. The findings form the ingredients of a structural model of the labor market which is estimated using time-series observations from 1951 t o 1983. The greater volatility of employment relative to earnings is measured by a specific parameter which, in this model, relates to the objectives of trade unions. Copyright 1988 by Royal Economic Society.

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Bibliographic Info

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

Volume (Year): 98 (1988)
Issue (Month): 393 (December)
Pages: 1105-26

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Handle: RePEc:ecj:econjl:v:98:y:1988:i:393:p:1105-26

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Cited by:
  1. Kornelius Kraft, 2006. "Wage versus efficient bargaining in oligopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(7), pages 595-604.
  2. Skedinger, Per, 2014. "Effects of Payroll Tax Cuts for Young Workers," Working Paper Series 1031, Research Institute of Industrial Economics.
  3. Kees Folmer, 2009. "Why do macro wage elasticities diverge?," CPB Memorandum 224, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Jacobson, Tor & Ohlsson, Henry, 1996. "Working Time, Employment, and Work Sharing: Evidence from Sweden," Working Paper Series in Economics and Finance 135, Stockholm School of Economics.
  5. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis," IZA Discussion Papers 7958, Institute for the Study of Labor (IZA).

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