Employment determination in the Swedish wood industry : a test of the labor demand model
The paper presents an empirical analysis of employment determination in the Swedish wood industry. The conventional labor demand model is tested against the alternative hypothesis that both wages and employment are subject to bargaining. The labor demand model is not supported by the data. Outside wages consistently influence wages negatively, so it is concluded that the alternative model of efficient bargains provides a better explanation of the results.
Volume (Year): 5 (1992)
Issue (Month): 1 (Spring)
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- L Christofides & A Oswald, 1991. "Efficient and Inefficient Employment Outcomes: A Study Based on Canadian Contract Data," CEP Discussion Papers dp0041, Centre for Economic Performance, LSE.
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- Nickell, S J & Andrews, M, 1983. "Unions, Real Wages and Employment in Britain 1951-79," Oxford Economic Papers, Oxford University Press, vol. 35(0), pages 183-206, Supplemen.
- Alogoskoufis, George & Manning, Alan, 1991. "Tests of alternative wage employment bargaining models with an application to the UK aggregate labour market," European Economic Review, Elsevier, vol. 35(1), pages 23-37, January.
- Holmlund, B. & Skedinger, P., 1988. "Wage Bargaining And Wage Drift: Evidence From The Swedish Wood Industry," Papers 419, Stockholm - International Economic Studies.
- Pencavel, John, 1985. " Wages and Employment under Trade Unionism: Microeconomic Models and Macroeconomic Applications," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 197-225.
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