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Decentralized Public Sector Wage Determination: Wage Curve and Wage Comparison for Norwegian Teachers in the Pre‐WW2 Period

  • Torberg Falch

The recent trend towards decentralization of European public sector wage determination relaxes some of the central administered wage setting mechanisms developed in the post‐WW2 period. This paper discusses teacher wage determination in Norway in 1905-39, a period with a highly decentralized public sector wage formation. Separate wage equations for urban and rural areas are estimated. I find that the responsiveness to unemployment of the urban wage was of the same magnitude as in the post‐WW2 period private sector wage formation. In addition, the internal teacher labour market and local economic conditions influence the wage level. The rural wage mainly followed the urban wage. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd 2001.

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Article provided by CEIS in its journal Labour.

Volume (Year): 15 (2001)
Issue (Month): 3 (09)
Pages: 343-369

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Handle: RePEc:bla:labour:v:15:y:2001:i:3:p:343-369
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  1. Hirschel Kasper, 1970. "The effects of collective bargaining on public school teachers' salaries," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 24(1), pages 57-72, October.
  2. Bee, Malcolm & Dolton, Peter, 1995. "The Remuneration of School Teachers: Time Series and Cross-Section Evidence," The Manchester School of Economic & Social Studies, University of Manchester, vol. 63(1), pages 1-22, March.
  3. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, March.
  4. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
  5. Kremers, Jeroen J M & Ericsson, Neil R & Dolado, Juan J, 1992. "The Power of Cointegration Tests," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 325-48, August.
  6. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
  7. Johansen, Kare, 1995. "Norwegian Wage Curves," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(2), pages 229-47, May.
  8. Holmlund, B. & Ohlsson, H., 1990. "Wage Linkages Between Private and Public Sectors," Papers 1990t, Uppsala - Working Paper Series.
  9. Hatton, T J, 1988. "A Quarterly Model of the Labour Market in Interwar Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 50(1), pages 1-25, February.
  10. Johansen, Kare & Strom, Bjarne, 2001. " Wages and Politics: Evidence from the Norwegian Public Sector," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(3), pages 311-31, July.
  11. Kåre Johansen & Bjarne Strøm, 2003. "Efficiency wages, wage comparison, and public sector budgeting," Economics of Governance, Springer, vol. 4(3), pages 215-228, November.
  12. Borjas, George J, 1980. "Wage Determination in the Federal Government: The Role of Constituents and Bureaucrats," Journal of Political Economy, University of Chicago Press, vol. 88(6), pages 1110-47, December.
  13. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
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