IDEAS home Printed from https://ideas.repec.org/p/zbw/bofrdp/rdp1989_017.html

Unions, wages and employment in Finland

Author

Listed:
  • Tyrväinen, Timo

Abstract

Reduced form wage and employment equations stemming from a bargaining framework are estimated with two-step method proposed by Engle and Granger (1987). Quarterly data for manufacturing and aggregate private sector is used. Step response functions due to various shocks were calculated by dynamic simulation. Adjustment was rather fast in general. If the actual real wage-employment combination is considered as inappropriate, it is not due to labour market rigidities. It rather implies that the equilibrium is inappropriate. Out-sample short-run forecasts were also simulated. In addition to standard variables several tax variables as also a proxy for union power was included. The positive effect found for union strength on both wages and employment in manufacturing industry is not evaluated as an evidence for efficient contract model.

Suggested Citation

  • Tyrväinen, Timo, 1989. "Unions, wages and employment in Finland," Bank of Finland Research Discussion Papers 17/1989, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp1989_017
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/211552/1/bof-rdp1989-017.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:bla:econom:v:54:y:1987:i:213:p:21-40 is not listed on IDEAS
    2. Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer.
    3. Hendry, David F, 1986. "Econometric Modelling with Cointegrated Variables: An Overview," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 201-212, August.
    4. Haaparanta, Pertti & Kontulainen, Jarmo, 1989. "Real exchange rate as an unobservable variable," Research Discussion Papers 13/1989, Bank of Finland.
    5. Banerjee, Anindya, et al, 1986. "Exploring Equilibrium Relationships in Econometrics through Static Models: Some Monte Carlo Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 253-277, August.
    6. repec:bla:scandj:v:87:y:1985:i:1:p:102-19 is not listed on IDEAS
    7. Robert Engle & Clive Granger, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    8. Holmlund, Bertil, 1983. "Payroll Taxes and Wage Inflation: The Swedish Experiences," Working Paper Series 68, Research Institute of Industrial Economics.
    9. Carruth, Alan A & Oswald, Andrew J & Findlay, Lewis, 1986. "A Test of a Model of Trade Union Behaviour: The Coal and Steel Industries in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(1), pages 1-18, February.
    10. Skolnik, Amy, 1989. "The U.S. - Canada free trade agreement : A model for Finland?," Research Discussion Papers 05/1989, Bank of Finland.
    11. Granger, Clive W J, 1986. "Developments in the Study of Cointegrated Economic Variables," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 213-228, August.
    12. Engle, Robert F. & Yoo, Byung Sam, 1987. "Forecasting and testing in co-integrated systems," Journal of Econometrics, Elsevier, vol. 35(1), pages 143-159, May.
    13. Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, vol. 97(385), pages 121-139, March.
    14. Michael Bruno & Jeffrey D. Sachs, 1985. "Economics of Worldwide Stagflation," NBER Books, National Bureau of Economic Research, Inc, number brun85-1, January-J.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tyrväinen, Timo, 1991. "Unions, wages and employment : evidence from Finland," Research Discussion Papers 16/1991, Bank of Finland.
    2. Tyrväinen, Timo, 1989. "Unions, wages and employment in Finland," Research Discussion Papers 17/1989, Bank of Finland.
    3. Tyrväinen, Timo, 1991. "Unions, wages and employment: evidence from Finland," Bank of Finland Research Discussion Papers 16/1991, Bank of Finland.
    4. Neil R. Ericsson, 2021. "Dynamic Econometrics in Action: A Biography of David F. Hendry," International Finance Discussion Papers 1311, Board of Governors of the Federal Reserve System (U.S.).
    5. PHILIP E.T. LEWIS & GARRY A. MacDONALD, 1993. "Testing for Equilibrium in the Australian Wage Equation," The Economic Record, The Economic Society of Australia, vol. 69(3), pages 295-304, September.
    6. Levent KORAP, 2008. "Exchange Rate Determination Of Tl/Us$:A Co-Integration Approach," Istanbul University Econometrics and Statistics e-Journal, Department of Econometrics, Faculty of Economics, Istanbul University, vol. 7(1), pages 24-50, May.
    7. Baffes, John & Shah, Anwar, 1990. "Taxing choices in deficit reduction," Policy Research Working Paper Series 556, The World Bank.
    8. Bardsen, Gunnar, "undated". "Dynamic Modelling And The Demand For Narrow Money In Norway," Economic Research Papers 268479, University of Warwick - Department of Economics.
    9. John Y. Campbell & Pierre Perron, 1991. "Pitfalls and Opportunities: What Macroeconomists Should Know about Unit Roots," NBER Chapters, in: NBER Macroeconomics Annual 1991, Volume 6, pages 141-220, National Bureau of Economic Research, Inc.
    10. Paqué, Karl-Heinz, 1991. "Structural wage rigidity in West Germany 1950-1989: Some new econometric evidence," Kiel Working Papers 489, Kiel Institute for the World Economy (IfW Kiel).
    11. Norah Al-Ballaa, 2005. "Test for cointegration based on two-stage least squares," Journal of Applied Statistics, Taylor & Francis Journals, vol. 32(7), pages 707-713.
    12. Baffes, John & Gohou, Gaston, 2005. "The co-movement between cotton and polyester prices," Policy Research Working Paper Series 3534, The World Bank.
    13. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    14. Wadud, Zia, 2015. "Decomposing the drivers of aviation fuel demand using simultaneous equation models," Energy, Elsevier, vol. 83(C), pages 551-559.
    15. Ali Anari & James Kolari, 2001. "Stock Prices And Inflation," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 24(4), pages 587-602, December.
    16. Esther Stroe-Kunold & Joachim Werner, 2009. "A drunk and her dog: a spurious relation? Cointegration tests as instruments to detect spurious correlations between integrated time series," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(6), pages 913-940, November.
    17. Bahmani-Oskooee, Mohsen & Alse, Janardhanan, 1995. "Is there any long-run relation between the terms of trade and trade balance?," Journal of Policy Modeling, Elsevier, vol. 17(2), pages 199-205, April.
    18. Ericsson, Neil R., 1992. "Cointegration, exogeneity, and policy analysis: An overview," Journal of Policy Modeling, Elsevier, vol. 14(3), pages 251-280, June.
    19. Noel D. Uri, 1998. "The Impact of Energy on the Adoption of Conservation Tillage in the United States," Energy & Environment, , vol. 9(5), pages 549-568, August.
    20. Edison, Hali J. & Pauls, B. Dianne, 1993. "A re-assessment of the relationship between real exchange rates and real interest rates: 1974-1990," Journal of Monetary Economics, Elsevier, vol. 31(2), pages 165-187, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:bofrdp:rdp1989_017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/bofgvfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.