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An Application of Wage Bargaining Models to Norwegian Panel Data

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  • Wulfsberg, Fredrik

Abstract

Wage determination in Norwegian industry is investigated using a panel of over 7,000 firms over seventeen years. A standard right-to-manage bargaining model serves as theoretical background for the empirical specification. Wage equations focusing on the relative importance of insider versus outsider variables are estimated, controlling for firm-specific fixed effects. Although outsider variables are more important, insider variables have a significant effect on wages. Estimated insider weight is less than for countries with less-centralized wage determination. Using regional unemployment data, the author estimates unemployment elasticity between -0.04 and -0.10. There is no strong evidence for real wage resistance in the long run. Copyright 1997 by Royal Economic Society.

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Bibliographic Info

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

Volume (Year): 49 (1997)
Issue (Month): 3 (July)
Pages: 419-40

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Handle: RePEc:oup:oxecpp:v:49:y:1997:i:3:p:419-40

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Cited by:
  1. Anabela Carneiro & Pedro Portugal, 2004. "Market Power, Dismissal Threat, and Rent Sharing: the Role of Insider and Outsider Forces in Wage Bargaining," CEF.UP Working Papers 0403, Universidade do Porto, Faculdade de Economia do Porto.
  2. Frank Scharr, 2005. "Tarifbindung, Rententeilung und Konzessionsverträge als Einflussgrößen der Lohnhöhe in Unternehmen : eine Untersuchung mit Mikrodaten für thüringische Firmen," ifo Dresden Studien, Ifo Institute for Economic Research at the University of Munich, number 39.
  3. 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 2004/4, Norges Bank.
  4. David Greenaway & Robert Hine & Peter Wright, 2000. "Further evidence on the effect of foreign competition on industry level wages," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(3), pages 522-538, 09.
  5. Kåre Johansen, 2002. "Regional Wage Curves Empirical Evidence from Norway," Working Paper Series 0302, Department of Economics, Norwegian University of Science and Technology.
  6. Azémar, Céline & Desbordes, Rodolphe, 2010. "Who Ultimately Bears the Burden of Greater Non-Wage Labour costs?," SIRE Discussion Papers 2010-12, Scottish Institute for Research in Economics (SIRE).
  7. Petreski, Marjan & Mojsoska-Blazevski, Nikica, 2011. "Real Wages in the Manufacturing Industry in Macedonia: The Role of Macroeconomic Factors, with reference to recession times," MPRA Paper 41941, University Library of Munich, Germany.
  8. Gunnar Bårdsen & Jurgen Doornik & Jan Tore Klovland, 2000. "A Wage Curve for the Interwar Labour Market: Evidence from a Panel of Norwegian Manufacturing Industries," Working Paper Series 1802, Department of Economics, Norwegian University of Science and Technology, revised 15 Apr 2001.
  9. Falch, Torberg & Johansen, Kåre & Strøm, Bjarne, 2009. "Teacher shortages and the business cycle," Labour Economics, Elsevier, vol. 16(6), pages 648-658, December.
  10. Carlsen, Fredrik & Johansen, Kare, 2005. "Regional wages and subjective measures of employment opportunities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(3), pages 377-400, May.
  11. Alfonso Arpaia & Giuseppe Carone, 2004. "Do labour taxes (and their composition) affect wages in the short and the long run? - Alfonso Arpaia and Giuseppe Carone," European Economy - Economic Papers 216, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  12. Askildsen, Jan Erik & Nilsen, Oivind Anti, 2002. "Union membership and wage formation," European Journal of Political Economy, Elsevier, vol. 18(2), pages 345-363, June.

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