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Regional Wage Curves Empirical Evidence from Norway

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  • Kåre Johansen

    (Department of Economics, Norwegian University of Science and Technology)

Abstract

The papers studies wage formation using panel data for a large sample of Norwegian municipalities covering the time period 1970— 1992. The main conclusions are the following. Regional manufacturing wages are negatively related to regional unemployment, but the effects of open as well as total regional unemployment are small. We find a numerically important wage dampening effect of labour market programs. However, we can not reject the null that only total unemployment matters. Finally, manufacturing profitability is important in shaping regional manufacturing wages and reduced regional payroll taxes are almost fully transmitted into reduced regional wage costs.

Suggested Citation

  • Kåre Johansen, 2002. "Regional Wage Curves Empirical Evidence from Norway," Working Paper Series 0302, Department of Economics, Norwegian University of Science and Technology.
    • Handle: RePEc:nst:samfok:0302
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    File URL: http://www.svt.ntnu.no/iso/WP/2002/3wagecurvewp.pdf
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    References listed on IDEAS

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    4. Dobrescu, Emilian, 2006. "Integration of macroeconomic behavioural relationships and the input-output block: Romanian modelling experience," MPRA Paper 35748, University Library of Munich, Germany.

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    More about this item

    Keywords

    Panel Data; Wage Curve; Labour Market Programs;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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