Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147436
Authors: 
Gjelsvik, Marit Linnea
Nymoen, Ragnar
Sparrman, Victoria
Year of Publication: 
2015
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 18/2015
Abstract: 
Collective agreements have played a central role in the system of wage formation in Norway for more than fifty years. Although the degree of coordination achieved has been variable, pattern wage bargaining has been a mainstay of the system. We investigate the degree of invariance in wage formation in Norway with respect to two recent structural changes: the transition towards inflation targeting in monetary policy and an unprecedented surge in labour supply due to higher immigration rates. We report empirical results that support the view that a semi-permanent high immigration may affect wages negatively in a significant way. However we do not find evidence that the stability of the arbitration system, and in particular the wage-bargaining pattern, has been changed by labour immigration or by inflation targeting monetary policy. An explanation of why we do not find evidence of structural changing effects of the transition of monetary policy, can be found in the fact that the wage arbitration system itself has syncronized the inflation expectations of the social partners. In that analysis, inflation targeting became a new layer of nominal stabilization, on top of the existing one.
Subjects: 
Inflation modelling
pattern wage bargaining
inflation targeting
dynamic econometrics
cointegration
small open economy
JEL: 
C52
E24
E31
E37
J31
Document Type: 
Working Paper

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