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The wage curve: convexity, kinks and composition effects

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  • Kare Johansen

Abstract

A detailed analysis is provided of the shape of the wage curve using annual time series for Norwegian manufacturing. The main results are summarized as follows. Unemployment affects wages significantly, and we provide evidence in favour of a monotonically decreasing but highly non-linear wage curve. The long-term unemployed exert less of a wage dampening effect than do recently laid off workers, and real wage responsiveness to unemployment seems also to be stronger with higher inflation.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327416
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 29 (1997)
Issue (Month): 1 ()
Pages: 71-78

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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:71-78

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Cited by:
  1. AlbÆk, Karsten & Asplund, Rita & Blomskog, Stig & Barth, Erling & GuÐmundsson, Björn Runar & Karlsson, Vifill & Madsen, Erik, 2002. "Dimensions of the Wage-dimensions Relationship in the Nordic Countries: Wage Flexibility without Wage Curves," Discussion Papers 698, The Research Institute of the Finnish Economy.
  2. Kåre Johansen & Ørjan Mydland & Bjarne Strøm, 2007. "Politics in wage setting: does government colour matter?," Economics of Governance, Springer, vol. 8(2), pages 95-109, February.
  3. Albaek, K. & Asplund, R. & Blomskog, S. & Barth, E. & Guomundsson,B.R. & Karlsson, V. & Madsen, E.S., 1999. "Domensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility without Wage Curves," Papers 99-24, Carleton - School of Public Administration.
  4. Roger Bjørnstad & Ragnar Nymoen, 1999. "Wage and Profitability: Norwegian Manufacturing 1967-1998," Discussion Papers 259, Research Department of Statistics Norway.
  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. Blanchflower, David G. & Oswald, Andrew J., 2005. "The Wage Curve Reloaded," IZA Discussion Papers 1665, Institute for the Study of Labor (IZA).
  7. Longhi, Simonetta & Nijkamp, Peter & Reggiani, Aura & Blien, Uwe, 2002. "Forecasting regional labour markets in Germany: an evaluation of the performance of neural network analysis," ERSA conference papers ersa02p117, European Regional Science Association.

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