Against the Wind: Bargaining Recentralization and Wage Inequality in Norway, 1987-91

The Economic Journal

Posted: 20 Jan 1998

See all articles by Lawrence M. Kahn

Lawrence M. Kahn

Cornell University - School of Industrial and Labor Relations; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Abstract

In the late 1980s, Norway's labor market experienced similar supply and demand shifts for skills to other countries', but unlike other OECD nations, Norway's wage setting system became more centralized. The pay distribution in Norway became more compressed at the bottom from 1987 to 1991, while low-wage workers in other countries lost ground relatively. Using Norwegian microdata for 1987 and 1991, I found that changing labor market prices helped cause this wage compression. Further, the less educated had declining relative overall employment but increasing relative public sector employment, both possible labor market responses to the wage compression.

JEL Classification: J31, J51

Suggested Citation

Kahn, Lawrence M., Against the Wind: Bargaining Recentralization and Wage Inequality in Norway, 1987-91. The Economic Journal. Available at SSRN: https://ssrn.com/abstract=49541

Lawrence M. Kahn (Contact Author)

Cornell University - School of Industrial and Labor Relations ( email )

265 Ives Hall
Ithaca, NY 14853-3901
United States
607-255-0510 (Phone)
607-255-4496 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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