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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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Author Info
Gunnar Bårdsen () (Norges Bank)
Jurgen Doornik
Jan Tore Klovland

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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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Paper provided by Norges Bank in its series Working Paper with number 2004/8.

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Length: 22 pages
Date of creation: 20 Mar 2004
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Handle: RePEc:bno:worpap:2004_08

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Related research
Keywords: wages; depression; panel data; dynamics;

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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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