Dimensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility without Wage Curves
Research output: Working paper › Research
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- DP 99-24
Submitted manuscript, 124 KB, PDF document
This paper analyses wage formation in the Nordic countries at the regional level by the use of micro-data. Our results deviate systematically from the main conclusions drawn by Blanchflower and Oswald (1994). We find no stable negative relation between wages and unemployment across regions in the Nordic labor markets once regional fixed effects are accounted for. Wage formation at the regional level is characterized by considerable persistence, but unemployment exerts no immediate influence on wages at the regional level. There is no evidence of a wage curve, nor of a Phillips curve, at the regional level in the Nordic countries. The results are consistent with a theoretical model where central bargaining agents determine a national wage increment, and local bargaining agents determine wage drift
Original language | English |
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Place of Publication | Cph. |
Publisher | Department of Economics, University of Copenhagen |
Number of pages | 31 |
Publication status | Published - 1999 |
- Faculty of Social Sciences - phillips curve, wage curve, unemployment
Research areas
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ID: 161095