Dimensions of the wage-unemployment relationship in the nordic countries: Wage flexibility without wage curves
ISBN: 978-0-76230-693-0, eISBN: 978-1-84950-067-8
Publication date: 1 January 2000
Abstract
This study uses micro-data to analyze wage formation in the Nordic countries at the regional level. Our results deviate systematically from the main conclusions drawn by Blanchflower and Oswald (1994). We do find a significant negative long-run relationship between unemployment and real wages at the regional level. However, 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 transitory 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
Citation
Albæk, K., Asplund, R., Barth, E., Blomskog, S., Rúnar Guômundsson, B., Karlsson, V. and Strøjer Madsen, E. (2000), "Dimensions of the wage-unemployment relationship in the nordic countries: Wage flexibility without wage curves", Research in Labor Economics (Research in Labor Economics, Vol. 19), Emerald Group Publishing Limited, Leeds, pp. 345-381. https://doi.org/10.1016/S0147-9121(00)19014-4
Publisher
:Emerald Group Publishing Limited
Copyright © 2000, Emerald Group Publishing Limited