Domensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility without Wage Curves

Karsten Albæk, R. Asplund, S. Blomskog, Erling Barth, B.R. Guomundsson, V. Karlsson and Erik Madsen

Working Papers from Carleton - School of Public Administration

Abstract: 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.

Keywords: WAGES; UNEMPLOYMENT; REGIONAL ECONOMY (search for similar items in EconPapers)
JEL-codes: J30 J31 (search for similar items in EconPapers)
Pages: 50 pages
Date: 1999
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Related works:
Working Paper: Dimensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility Without Wage Curves (2000)
Working Paper: Dimensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility without Wage Curves (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:carlad:99-24

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