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Wage Drift And Bargaining: Evidence From Norway


  • HOLDEN, S.


Empirical equations, based on a theoretical bargaining model, are estimated on data for wage drift in six industries and in the aggregate manufacturing sector in Norway. It is shown that the central wage settlement has a strong impact on aggregate and relative wages in the short run, and that this effect is not offset by wage drift. Wage drift is also found to depend negatively on the size of inventories. This is interpreted as arising from the effect of the initial size of the inventories on the cost to the firm of an industrial conflict. Copyright 1989 by The London School of Economics and Political Science.
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  • Holden, S., 1989. "Wage Drift And Bargaining: Evidence From Norway," Papers 348, London School of Economics - Centre for Labour Economics.
  • Handle: RePEc:fth:lseple:348

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    References listed on IDEAS

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    Cited by:

    1. Bastos, Paulo & Monteiro, Natália P. & Straume, Odd Rune, 2009. "Firm heterogeneity and wages in unionised labour markets: Theory and evidence," Labour Economics, Elsevier, vol. 16(4), pages 440-450, August.
    2. Hibbs, Douglas Jr. & Locking, Hakan, 1996. "Wage compression, wage drift and wage inflation in Sweden," Labour Economics, Elsevier, vol. 3(2), pages 109-141, September.
    3. Salimata Sissoko, 2011. "Working Paper 03-11 - Niveau de décentralisation de la négociation et structure des salaires," Working Papers 1103, Federal Planning Bureau, Belgium.
    4. Holden, Steinar, 1998. " Wage Drift and the Relevance of Centralised Wage Setting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(4), pages 711-731, December.
    5. Steinar Holden, 2001. "Monetary Policy and Nominal Rigidities under Low Inflation," CESifo Working Paper Series 481, CESifo Group Munich.
    6. Christofides, Louis N. & Nearchou, Paris, 2007. "Real and nominal wage rigidities in collective bargaining agreements," Labour Economics, Elsevier, vol. 14(4), pages 695-715, August.
    7. repec:clr:wugarc:y:1993:v:19i:4p:423 is not listed on IDEAS
    8. Kåre Johansen, 2002. "Regional Wage Curves Empirical Evidence from Norway," Working Paper Series 0302, Department of Economics, Norwegian University of Science and Technology.
    9. Pistoresi, Barbara & Strozzi, Chiara, 2001. "Rent Sharing in Wage Determination: Evidence from Italy," CEPR Discussion Papers 2939, C.E.P.R. Discussion Papers.
    10. Steinar Holden, 2004. "The Costs of Price Stability: Downward Nominal Wage Rigidity in Europe," Economica, London School of Economics and Political Science, vol. 71(281), pages 183-208, May.
    11. Steinar Holden, 1990. "Insiders and outsiders in labour market models," Journal of Economics, Springer, vol. 52(1), pages 43-54, February.
    12. Barbara Pistoresi & Chiara Strozzi, 2003. "Rent Sharing and Bargaining Levels: Evidence from Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 62(2), pages 145-170, October.
    13. Kuhn, Peter & Gu, Wulong, 1998. "Centralization and strikes," Labour Economics, Elsevier, vol. 5(3), pages 243-265, September.
    14. Karl Ove Moene & Michael Wallerstein, 1993. "The Economic Performance of Different Bargaining Institutions," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 19(4), pages 423-450.
    15. Gonzaga, Gustavo & Scandiuzzi, João Carlos, 1998. "How Does Government Wage Policy Affect Wage Bargaining in Brazil?," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 18(1), May.
    16. Carlsen, Fredrik & Johansen, Kare, 2005. "Regional wages and subjective measures of employment opportunities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(3), pages 377-400, May.
    17. Holden, Steinar & Wulfsberg, Fredrik, 2007. "Are real wages rigid downwards?," Memorandum 07/2007, Oslo University, Department of Economics.
    18. Karl Ove Moene & Michael Wallerstein, 1995. "Solidaristic Wage Bargaining," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 22, pages 79-94.
    19. Dyrstad, Jan Morten & Johansen, Kare, 2000. " Regional Wage Responses to Unemployment and Profitabililty: Empirical Evidence from Norwegian Manufacturing Industries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(1), pages 101-117, February.
    20. Roger Bjørnstad & Terje Skjerpen, 2003. "Technology, Trade and Inequality," Discussion Papers 364, Statistics Norway, Research Department.
    21. Ragnar Nymoen, 2017. "Between Institutions and Global Forces: Norwegian Wage Formation Since Industrialisation," Econometrics, MDPI, Open Access Journal, vol. 5(1), pages 1-54, January.
    22. Houba, Harold & Bolt, Wilko, 2000. "Holdouts, backdating and wage negotiations," European Economic Review, Elsevier, vol. 44(9), pages 1783-1800, October.
    23. Ordine, Patrizia, 1995. "Wage drift and minimum contractual wage: Theoretical interrelationship and empirical evidence for Italy," Labour Economics, Elsevier, vol. 2(4), pages 335-357, December.
    24. Rodolphe Dos Santos Ferreira & Philippe Michel, 2013. "Keynes' Wage–Price Dynamics," Metroeconomica, Wiley Blackwell, vol. 64(1), pages 44-72, February.
    25. Steinar Holden & Fredrik Wulfsberg, 2007. "How strong is the case for downward real wage rigidity?," Working Papers 07-6, Federal Reserve Bank of Boston.

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