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A Wage Curve for the Interwar Labour Market: Evidence from a Panel of Norwegian Manufacturing Industries

Author

Listed:
  • Gunnar Bårdsen

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

  • Jurgen Doornik

    (Nuffield College, Oxford)

  • Jan Tore Klovland

    (Department of Economics, Norwegian School of Economics and Business Administration)

Abstract

We present an econometric analysis of wage behaviour in Norway during the interwar years. Applying GMM estimation methods to a newly constructed panel of manufacturing industry data, we find that the interwar years do not seem to be such an anomalous time period as has been suggested with respect to wage behaviour. We estimate a long-run wage curve that has all the modern features of being homogeneous in prices, proportional to productivity, and having an unemployment elasticity of -0.1. We also present some new Monte Carlo evidence on the properties of the estimators used.

Suggested Citation

  • Gunnar Bårdsen & Jurgen Doornik & Jan Tore Klovland, 2000. "A Wage Curve for the Interwar Labour Market: Evidence from a Panel of Norwegian Manufacturing Industries," Working Paper Series 1802, Department of Economics, Norwegian University of Science and Technology, revised 15 Apr 2001.
    • Handle: RePEc:nst:samfok:1802
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    File URL: http://www.svt.ntnu.no/iso/WP/2002/18panel.pdf
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    References listed on IDEAS

    as
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    5. Nymoen, Ragnar, 1989. "Modelling Wages in the Small Open Economy: An Error-Correction Model of Norwegian Manufacturing Wages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(3), pages 239-258, August.
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    11. Kare Johansen, 1999. "Insider forces in wage determination: new evidence for Norwegian industries," Applied Economics, Taylor & Francis Journals, vol. 31(1), pages 137-147.
    12. Carlin, Wendy & Soskice, David, 1990. "Macroeconomics and the Wage Bargain: A Modern Approach to Employment, Inflation, and the Exchange Rate," OUP Catalogue, Oxford University Press, number 9780198772446.
    13. Dag Kolsrud & Ragnar Nymoen, 1998. "Unemployment and the open economy wage-price spiral," Journal of Economic Studies, Emerald Group Publishing, vol. 25(6), pages 450-467, October.
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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