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Erik Strøjer Madsen

The Wage Curve in the Nordic Countries

Publikation: Bog/antologi/afhandling/rapportBogForskning

This report focusses on wage formation in the Nordic countries with a special attention to the effect from changes in local unemployment on the local wage level. The book gives a comprehensive and comparable study of this topic in the five Nordic countries which may be of great value for researchers or civil servants with a deeper interest in labour market problems. The main result from this study is that the wage formation at the regional level is rather inflexible in the short run in all five Nordic countries, with no effect from changes in local unemployment on the local wage level. This result is contrary to earlier studies that observed a negative relationship between the level of unemployment and wages across regions. However, while there is no regional wage responsiveness to unemployment in the short run, the wage adjustment moves in the direction of lower wages in high unemployment regions in the long run. One explanation put forward for this slow speed of regional wage adjustment is the rather centralized bargaining system on the labour market in the Nordic countries. Wages are set according to the average unemployment rate for the economy as a whole, and differences in regional unemployment are not taken into consideration at the central level of wage negotiations
Bidragets oversatte titelThe Wage Curve in the Nordic Countries
OriginalsprogEngelsk
UdgivelsesstedCopenhagen
ForlagNordic Council of Ministers
Antal sider109
StatusUdgivet - 1999

    Forskningsområder

  • Wage curve, Wage formation, Phillips curve, Labour market, Unemployment, Regional labourmarkets

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