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Regional Wage Curves Empirical Evidence from Norway

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Author Info
Kåre Johansen () (Department of Economics, Norwegian University of Science and Technology)

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Abstract

The papers studies wage formation using panel data for a large sample of Norwegian municipalities covering the time period 1970— 1992. The main conclusions are the following. Regional manufacturing wages are negatively related to regional unemployment, but the effects of open as well as total regional unemployment are small. We find a numerically important wage dampening effect of labour market programs. However, we can not reject the null that only total unemployment matters. Finally, manufacturing profitability is important in shaping regional manufacturing wages and reduced regional payroll taxes are almost fully transmitted into reduced regional wage costs.

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Publisher Info
Paper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 0302.

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Length: 27 pages
Date of creation: 20 Jul 2002
Date of revision:
Handle: RePEc:nst:samfok:0302

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Related research
Keywords: Panel Data Wage Curve Labour Market Programs

Other versions of this item:

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General

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    Other versions:
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    Other versions:
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  28. Johansen, Kare & Ringdal, Kristen & Thoring, Thor Atle, 2001. "Firm Profitability, Regional Unemployment and Human Capital in Wage Determination," Applied Economics, Taylor and Francis Journals, vol. 33(1), pages 113-21, January. [Downloadable!] (restricted)
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