Insider forces in wage determination: new evidence for Norwegian industries
Author: Johansen K.
Source: Applied Economics, Volume 31, Number 1, 1 January 1999 , pp. 137-147(11)
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
Publication date: 1999-01-01