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Wage formation and bargaining power during the Great Depression.

Abstract:
We present an econometric analysis of wage behaviour in Norway during the interwar years. The analysis is based on a panel of manufacturing industry data using GMM estimation methods. Our empirical analysis shows that wage formation in the interwar period can be understood with the help of modern bargaining theory and well-established wage equations. We estimate a long-run wage curve that has all the standard features of being homogeneous in prices, proportional to productivity, and with a negative unemployment elasticity. We also present some new Monte Carlo evidence on the properties of the estimators used.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1111/j.1467-9442.2009.01599.x

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Institution:
University of Oxford
Role:
Author


Publisher:
Blackwell Publishing
Journal:
Scandinavian Journal of Economics More from this journal
Volume:
112
Issue:
1
Pages:
211 - 233
Publication date:
2010-01-01
DOI:
ISSN:
0347-0520


Language:
English
UUID:
uuid:6b0c673d-e6f1-456d-bb49-391fc78735f5
Local pid:
oai:economics.ouls.ox.ac.uk:14973
Deposit date:
2011-08-16
ARK identifier:

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