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A European-type wage equation from an American-style labor market: Evidence from a panel of Norwegian manufacturing industries in the 1930s

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  • Gunnar Bårdsen

    ()
    (Norges Bank)

  • Jurgen Doornik

    (Nuffield College, Oxford)

  • Jan Tore Klovland

    (Norwegian School of Economics and Business Administration, Bergen)

Abstract

Using a newly constructed panel of manufacturing industry data for interwar Norway, we estimate a long-run wage curve for the 1930s that has all the modern features of being homogeneous in prices, proportional to productivity, and having an unemployment elasticity of -0.1. This result is more typical of contemporary European than U.S. wage equations, even if the labour market in interwar Norway possessed distinctively more ‘American’ features than those associated with present-day European welfare states. We also present some new Monte Carlo evidence on the properties of the estimators used.

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Bibliographic Info

Paper provided by Norges Bank in its series Working Paper with number 2004/4.

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Length: 22 pages
Date of creation: 20 Mar 2004
Date of revision:
Handle: RePEc:bno:worpap:2004_04

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Keywords: wages; depression; panel data; dynamics;

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Cited by:
  1. Blanchflower, David G. & Oswald, Andrew J., 2005. "The Wage Curve Reloaded," IZA Discussion Papers 1665, Institute for the Study of Labor (IZA).

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