The Wage Bargaining Structure in Norway and Sweden and its Influence on Real Wage Developments
25 Pages Posted: 15 Feb 2006
Date Written: December 1998
Abstract
The paper investigates the determinants of wages in the tradables and service sectors in Norway and Sweden. Tradables wages are determined by their own productivity growth whereas service sector wages are influenced by wage growth in the tradables sector. The traditional strong sensitivity of the real wage to changes in the unemployment rate has been virtually eliminated since the recessionary period in the early 1990s in Sweden, and real wages have grown faster than macroeconomic factors alone would suggest. In contrast, real wages have become more sensitive to cyclical conditions in Norway and have grown less rapidly than macroeconomic factors indicate. These changes in the wage process have hindered the development of private sector employment in Sweden but have stimulated private sector employment in Norway.
Keywords: wage bargaining, centralized, decentralized, real wage, tradables, services
JEL Classification: J3
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Andrei Shleifer and Robert W. Vishny
-
By Simeon Djankov, Rafael La Porta, ...
-
By Simeon Djankov, Florencio Lopez-de-silanes, ...
-
By Simeon Djankov, Rafael La Porta, ...
-
The Invisible Hand and the Grabbing Hand
By Timothy Frye and Andrei Shleifer
-
By Juan Carlos Botero, Simeon Djankov, ...
-
By Juan Carlos Botero, Simeon Djankov, ...
-
Governance Matters Iii: Governance Indicators for 1996-2002
By Daniel Kaufmann, Aart Kraay, ...