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Causes of Wage Increases in Swedish Manufacturing. A Remarkable Case of Regular Behaviour

  • Schager, Nils Henrik

    (Research Institute of Industrial Economics (IFN))

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    The present study is a theoretical and empirical investigation into the aggregate wage dynamics of Swedish manufacturing. It contains three essential results: •a rigorous search theoretical model of the wage behaviour of firms is presented and adapted for application to aggregate data •the implications of the model are confirmed by Swedish data for manufacturing industry and a stable wage drift equation is demonstrated to have existed since the mid-sixties •the model is consistent with the findings of earlier postwar empirical research on wage drift in Sweden and provides them with a more satisfactory theoretical interpretation.

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    File URL: http://www.ifn.se/wfiles/wp/wp195.pdf
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    Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 195.

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    Length: 38 pages
    Date of creation: Jun 1988
    Date of revision:
    Handle: RePEc:hhs:iuiwop:0195
    Contact details of provider: Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
    Phone: +46 8 665 4500
    Fax: +46 8 665 4599
    Web page: http://www.ifn.se/
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