The Effect of Skill Mismatch on Wages in a small open Economy with Centralized Wage Setting: The Norwegian Case
Pervasive skill-biased technological changes, probably from trade in computer technology, have visualized the pros and cons of wage setting centralization in small open economies. Skill mismatch has increased in countries with wage rigidity. As a small open economy with centralized wage setting, Norway is a particularly interesting case. Indeed, this analysis shows that skill\mismatch has increased and is long-lived because of low focus on skill-specific imbalances in wage settlements. The conclusions are drawn on the basis of an econometric analysis of the determinants of wages to workers in five educational categories in Norwegian manufacturing. Furthermore, I estimate a 15 per cent drop in equilibrium wages to workers with higher university education after 1987, a period of recentralization of collective bargaining.
|Date of creation:||May 2000|
|Date of revision:|
|Contact details of provider:|| Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway|
Phone: (+47) 21 09 00 00
Fax: +47 - 62 88 55 95
Web page: http://www.ssb.no/en/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 47-64, Spring.
- Stephen Machin, 1995.
"Changes in the Relative Demand for Skills in the UK Labour Market,"
CEP Discussion Papers
dp0221, Centre for Economic Performance, LSE.
- Machin, Steve, 1994. "Changes in the Relative Demand for Skills in the UK Labour Market," CEPR Discussion Papers 952, C.E.P.R. Discussion Papers.
- Pesaran, M. Hashem & Smith, Ron, 1995.
"Estimating long-run relationships from dynamic heterogeneous panels,"
Journal of Econometrics,
Elsevier, vol. 68(1), pages 79-113, July.
- Pesaran, M.H. & Smith, R., 1992. "Estimating Long-Run Relationships From Dynamic Heterogeneous Panels," Cambridge Working Papers in Economics 9215, Faculty of Economics, University of Cambridge.
- Levy, Frank & Murnane, Richard J, 1996. "With What Skills Are Computers a Complement?," American Economic Review, American Economic Association, vol. 86(2), pages 258-62, May.
- Nickell, S. & Wadhwani, S., 1989.
"Insider Forces And Wage Determination,"
334, London School of Economics - Centre for Labour Economics.
- Nickell, Stephen & Wadhwani, Sushil B, 1989. "Insider Forces and Wage Determination," CEPR Discussion Papers 310, C.E.P.R. Discussion Papers.
- Nickell, S. & Wadhwani, S., 1989. "Insider Forces And Wage Determination," Economics Series Working Papers 9972, University of Oxford, Department of Economics.
- Lawrence F. Katz & Ana L. Revenga, 1989. "Changes in the Structure of Wages: The U.S. versus Japan," NBER Working Papers 3021, National Bureau of Economic Research, Inc.
- Paul R. Krugman, 1994.
"Past and prospective causes of high unemployment,"
Proceedings - Economic Policy Symposium - Jackson Hole,
Federal Reserve Bank of Kansas City, issue Jan, pages 49-98.
- Marco Manacorda & Barbara Petrongolo, 1996.
"Skill Mismatch and Unemployment in OECD Countries,"
CEP Discussion Papers
dp0307, Centre for Economic Performance, LSE.
- David Blanchflower & L Katz & G Loveman, 1993.
"A Comparison of Changes in the Structure of Wages in Four OECD Countries,"
CEP Discussion Papers
dp0144, Centre for Economic Performance, LSE.
- Lawrence F. Katz & Gary W. Loveman & David G. Blanchflower, 1995. "A Comparison of Changes in the Structure of Wages in Four OECD Countries," NBER Chapters, in: Differences and Changes in Wage Structures, pages 25-66 National Bureau of Economic Research, Inc.
- Nickell, Stephen & Bell, Brian, 1995. "The Collapse in Demand for the Unskilled and Unemployment across the OECD," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 40-62, Spring.
- Kjersti-Gro Lindquist & Terje Skjerpen, 2000. "Explaining the change in skill structure of labour demand in Norwegian manufacturing," Discussion Papers 293, Statistics Norway, Research Department.
- Lawrence F. Katz & Gary W. Loveman & David G. Blanchflower, 1993. "A Comparison of Changes in the Structure of Wages," NBER Working Papers 4297, National Bureau of Economic Research, Inc.
- Salvanes, K.G. & Forre, S.E., 1999. "Job Destruction, Heterogeneous Workers, Trade and Technical Change: Matched Worker/Plant Data Evidence from Norway," Papers 15/99, Norwegian School of Economics and Business Administration-.
- 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 239-58, August.
When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:270. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (L MaasÃ¸)
If references are entirely missing, you can add them using this form.