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Wages, Taxes and the Utility-Maximizing Trade Union: A Confrontationwith Norwegian Data

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Author Info
Hersoug, Tor
Kjaer, Knut N
Rodseth, Asbjorn

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Abstract

This paper estimates a model of wage formation where the central assumptions are: (1) exce pt for a random error term, the aggregate wage level is determined by a single t rade union; (2) union utility depends on the real disposable wage and on employm ent; and (3) firmsdetermine employment and react to wage increases by reducing employment. The purpose is to see whether such a theory can be made operational and whether the model can be made to fit reasonably well with Norwegian data (19 62-82). Results are mixed and do not give much support to the approach taken, bu t several possibilities for further refinement remain. Copyright 1986 by Royal Economic Society.

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Publisher Info
Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 38 (1986)
Issue (Month): 3 (November)
Pages: 403-23
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Handle: RePEc:oup:oxecpp:v:38:y:1986:i:3:p:403-23

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  1. Anders Forslund & Nils Gottfries & Andreas Westermark, 2006. "Real and Nominal Wage Adjustment in Open Economies," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  2. David G. Blanchflower & Andrew J. Oswald, 1990. "The Wage Curve," NBER Working Papers 3181, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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