Prices, Productivity and Wage Bargaining in Open Economies

Anders Forslund (), Nils Gottfries () and Andreas Westermark ()

Scandinavian Journal of Economics, 2008, vol. 110, issue 1, pages 169-195

Abstract: According to the standard union bargaining model, unemployment benefits should have big effects on wages, but product-market prices and productivity should play no role in the wage bargain. We formulate an alternative strategic bargaining model, where labour and product-market conditions together determine wages. A wage equation is derived and estimated on aggregate data for four Nordic countries. Wages are found to depend not only on unemployment and the replacement ratio, but also on productivity, international prices and exchange rates. There is evidence of considerable nominal wage rigidity. Exchange rate changes have large and persistent effects on competitiveness. Copyright © The editors of the "Scandinavian Journal of Economics" 2008 .

Date: 2008

Downloads: (external link)
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9442.2008.00531.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:scandj:v:110:y:2008:i:1:p:169-195

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is edited by Jonas Agell, Nils Gottfries and Espen R. Moen

More articles in Scandinavian Journal of Economics from Blackwell Publishing
Series data maintained by Christopher F. Baum ().