Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/19093 
Year of Publication: 
2005
Series/Report no.: 
CESifo Working Paper No. 1629
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper analysis the link between political strength and public sector wages using a unique matched individual-employer data set for Norwegian local governments during the period 1990-1998. The results indicate that political strength, measured in several ways, has a positive effect on wages, while administrative strength, measured by the tenure of the chief executive, has a negative effect. The positive effect of political strength is consistent with a model in which the budgetary process is a multistage game and employment is determined in an interaction with interest groups prior to the wage bargain.
Subjects: 
public sector labor market
wage bargaining
political strength
budgetary process
JEL: 
H72
D73
J45
Document Type: 
Working Paper
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