Abstract
ABSTRACTThe paper presents empirical evidence on wage formation in Norway using annual time series data for manufacturing industry. First, we show that long‐run effects on consumer prices and taxes depend strongly on the exact definition of the empirical variables. Using the implicit factor income deflator, the wedge between consumer's and producer's real wages is insignificant. Second, our results indicate that there is a long‐run tradeoff between the wage level and the unemployment ratio and the Phillips curve specification is firmly rejected. Third, the paper presents empirical evidence in favour of a strongly non‐linear wage curve. Fourth, our results support the long‐term unemployment hypothesis, as increased proportion of long‐term unemployment shifts the wage curve outwards and to the right.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
