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Wage Drift And Bargaining: Evidence From Norway

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Author Info

  • HOLDEN, S.

Abstract

Empirical equations, based on a theoretical bargaining model, are estimated on data for wage drift in six industries and in the aggregate manufacturing sector in Norway. It is shown that the central wage settlement has a strong impact on aggregate and relative wages in the short run, and that this effect is not offset by wage drift. Wage drift is also found to depend negatively on the size of inventories. This is interpreted as arising from the effect of the initial size of the inventories on the cost to the firm of an industrial conflict. Copyright 1989 by The London School of Economics and Political Science.

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Bibliographic Info

Paper provided by London School of Economics - Centre for Labour Economics in its series Papers with number 348.

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Length: 35 pages
Date of creation: 1989
Date of revision:
Handle: RePEc:fth:lseple:348

Contact details of provider:
Postal: LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE, CENTER FOR LABOUR ECONOMICS, HOUGHTON STREET LONDON WC2A 2AE ENGLAND.
Phone: +44 (020) 7405 7686
Web page: http://www.lse.ac.uk/
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Keywords: collective bargaining ; wages ; industry;

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