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Employment determination in the Swedish wood industry : a test of the labor demand model

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  • Per Skedinger

    (Uppsala University and FIEF, Sweden)

Abstract

The paper presents an empirical analysis of employment determination in the Swedish wood industry. The conventional labor demand model is tested against the alternative hypothesis that both wages and employment are subject to bargaining. The labor demand model is not supported by the data. Outside wages consistently influence wages negatively, so it is concluded that the alternative model of efficient bargains provides a better explanation of the results.

Suggested Citation

  • Per Skedinger, 1992. "Employment determination in the Swedish wood industry : a test of the labor demand model," Finnish Economic Papers, Finnish Economic Association, vol. 5(1), pages 27-37, Spring.
    • Handle: RePEc:fep:journl:v:5:y:1992:i:1:p:27-37
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    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/f1992_1c.pdf
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    References listed on IDEAS

    as
    1. Oswald, A. J., 1995. "Efficient contracts are on the labour demand curve: Theory and facts," Labour Economics, Elsevier, vol. 2(1), pages 102-102, March.
    2. L Christofides & A Oswald, 1991. "Efficient and Inefficient Employment Outcomes: A Study Based on Canadian Contract Data," CEP Discussion Papers dp0041, Centre for Economic Performance, LSE.
    3. Pencavel, John, 1985. " Wages and Employment under Trade Unionism: Microeconomic Models and Macroeconomic Applications," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 197-225.
    4. Nickell, S J & Andrews, M, 1983. "Unions, Real Wages and Employment in Britain 1951-79," Oxford Economic Papers, Oxford University Press, vol. 35(0), pages 183-206, Supplemen.
    5. Alogoskoufis, George & Manning, Alan, 1991. "Tests of alternative wage employment bargaining models with an application to the UK aggregate labour market," European Economic Review, Elsevier, vol. 35(1), pages 23-37, January.
    6. Pencavel, John & Holmlund, Bertil, 1988. "The Determination of Wages, Employment, and Work Hours in an Economy with Centralised Wage-Setting: Sweden, 1950-83," Economic Journal, Royal Economic Society, vol. 98(393), pages 1105-1126, December.
    7. Holmlund, B. & Skedinger, P., 1988. "Wage Bargaining And Wage Drift: Evidence From The Swedish Wood Industry," Papers 419, Stockholm - International Economic Studies.
    8. Oswald, Andrew J & Turnbull, Peter J, 1985. "Pay and Employment Determination in Britain: What Are Labour," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 1(2), pages 80-97, Summer.
    9. Louis N. Christofides & Andrew J. Oswald, 1991. "Efficient and Inefficient Employment Outcomes: A Study Based on Canadian Data," NBER Working Papers 3648, National Bureau of Economic Research, Inc.
    10. Andrew Oswald, 1984. "Efficient Contracts are on the Labour Demand Curve: Theory and Facts," Working Papers 555, Princeton University, Department of Economics, Industrial Relations Section..
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    Cited by:

    1. Thorsten Upmann & Julia Müller, 2014. "The Structure of Firm-Specific Labour Unions," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 170(2), pages 336-364, June.

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