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Insider forces in wage determination: new evidence for Norwegian industries

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Abstract:

Using panel data for Norwegian industries, we establish a significant permanent relation between industry wages and industry profitability. The estimated long-run insider weight is above 0.2 and stable both over time and across industries. Industry wages are significantly affected by aggregate unemployment, and the preferred wage equation implies a highly convex wage curve.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/000368499324624

Publication date: January 1, 1999

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