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Insider forces in wage determination: new evidence for Norwegian industries

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  • Kare Johansen
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    Abstract

    Using panel data for Norwegian industries, we establish a significant permanent relation between industry wages and industry profitability. The estimated long-run insider weight is above 0.2 and stable both over time and across industries. Industry wages are significantly affected by aggregate unemployment, and the preferred wage equation implies a highly convex wage curve.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324624
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    Bibliographic Info

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

    Volume (Year): 31 (1999)
    Issue (Month): 1 ()
    Pages: 137-147

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    Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:137-147

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    Cited by:
    1. Kees Folmer, 2009. "Why do macro wage elasticities diverge?," CPB Memorandum 224, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Holmlund, Bertil, 2012. "Wage and Employment Determination in Volatile Times: Sweden 1913-1939," IZA Discussion Papers 6509, Institute for the Study of Labor (IZA).
    3. Kees Folmer, 2009. "Why do macro wage elasticities diverge? A meta analysis," CPB Discussion Paper 122, 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.

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