Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209767 
Year of Publication: 
1998
Series/Report no.: 
Arbeidsnotat No. 1998/9
Publisher: 
Norges Bank, Oslo
Abstract: 
In recent years, the OECD has measured the structural rate of unemployment by an indicator called the Non-Accelerating Wage Rate of Unemployment. The NAWRU indicator is an important element in the policy analysis of the OECD. The rise in the estimated NAWRUs is also taken as evidence that Nordic unemployment, as well as unemployment in the rest of Europe, has increased due to a malfunctioning of labour markets. The paper presents stable empirical wage equations for Denmark, Finland, Norway and Sweden over the period 1964-1994, in sharp contrast to the increased NAWRU estimates. The instability of the NAWRU estimates is the product of a misspecified underlying wage equation, and not due to instability in the wage setting itself.
Subjects: 
NAWRU indicator
structural unemployment
econometric wage equations
stability
nordic wage formation
Persistent Identifier of the first edition: 
ISBN: 
82-7553-132-2
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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