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Regional Wage Curves Empirical Evidence from Norway

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  • Kåre Johansen

    ()
    (Department of Economics, Norwegian University of Science and Technology)

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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File URL: http://www.svt.ntnu.no/iso/WP/2002/3wagecurvewp.pdf
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Bibliographic 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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Postal: 7491 Trondheim
Phone: 73 59 19 40
Fax: 73 59 69 54
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Web page: http://www.svt.ntnu.no/iso/WP/wp.htm
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Keywords: Panel Data; Wage Curve; Labour Market Programs;

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References

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Citations

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Cited by:
  1. Dobrescu, Emilian, 2006. "Integration of macroeconomic behavioural relationships and the input-output block: Romanian modelling experience," MPRA Paper 35748, University Library of Munich, Germany.
  2. Deller, Steven C., 2009. "Wages, Rent, Unemployment and Amenities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2).
  3. Dobrescu, Emilian, 2006. "Macromodel of the Romanian market economy (version 2005)," MPRA Paper 35749, University Library of Munich, Germany.

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