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Insider Forces, Asymmetries, and Outsider Ineffectiveness: Empirical Evidence for Norwegian Industries 1966-87

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  • Johansen, Kare

Abstract

Using panel data for 117 Norwegian industries from 1966 to 1987, the author shows that industry wages are significantly affected by industry performance. Insider effects are more important in expanding industries as compared to declining ones and most responsive to insider variables in good times. Industry wages are significantly affected by unemployment and the estimated unemployment coefficient is close to estimates obtained using time-series data. There is no long-run wage resistance and the main long-run determinants of industry wages are the outside wage and own profitability. Copyright 1996 by Royal Economic Society.

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Bibliographic Info

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

Volume (Year): 48 (1996)
Issue (Month): 1 (January)
Pages: 89-104

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Handle: RePEc:oup:oxecpp:v:48:y:1996:i:1:p:89-104

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Cited by:
  1. Holmlund, Bertil, 2012. "Wage and Employment Determination in Volatile Times: Sweden 1913-1939," IZA Discussion Papers 6509, Institute for the Study of Labor (IZA).
  2. Kåre Johansen, . "Nonlinear Wage Responses to Internal and External Factors," Working Paper Series 0902, Department of Economics, Norwegian University of Science and Technology, revised 25 Aug 2002.
  3. Kees Folmer, 2009. "Why do macro wage elasticities diverge?," CPB Memorandum 224, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Gunnar Bårdsen & Jurgen Doornik & Jan Tore Klovland, 2004. "A European-type wage equation from an American-style labor market: Evidence from a panel of Norwegian manufacturing industries in the 1930s," Working Paper 2004/8, Norges Bank.
  5. Kees Folmer, 2009. "Why do macro wage elasticities diverge? A meta analysis," CPB Discussion Paper 122, CPB Netherlands Bureau for Economic Policy Analysis.

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