The Determination of Wages, Employment, and Work Hours in an Economy with Centralised Wage-Setting: Sweden, 1950-83
A key component of recent explanations for the growth in unemployme nt in Western Europe is a negative relation between wage rates and employment. This paper examines the evidence for such a relationship for Swedish manufacturing industry and also investigates the corresponding movements of hours of work. The findings form the ingredients of a structural model of the labor market which is estimated using time-series observations from 1951 t o 1983. The greater volatility of employment relative to earnings is measured by a specific parameter which, in this model, relates to the objectives of trade unions. Copyright 1988 by Royal Economic Society.
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Volume (Year): 98 (1988)
Issue (Month): 393 (December)
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