Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171903
Authors: 
Nymoen, Ragnar
Year of Publication: 
2017
Citation: 
[Journal:] Econometrics [ISSN:] 2225-1146 [Volume:] 5 [Year:] 2017 [Issue:] 1 [Pages:] 1-54
Abstract: 
This paper reviews the development of labour market institutions in Norway, shows how labour market regulation has been related to the macroeconomic development, and presents dynamic econometric models of nominal and real wages. Single equation and multi-equation models are reported. The econometric modelling uses a new data set with historical time series of wages and prices, unemployment and labour productivity. Impulse indicator saturation is used to achieve robust estimation of focus parameters, and the breaks are interpreted in the light of the historical overview. A relatively high degree of constancy of the key parameters of the wage setting equation is documented, over a considerably longer historical time period than earlier studies have done. The evidence is consistent with the view that the evolving system of collective labour market regulation over long periods has delivered a certain necessary level of coordination of wage and price setting. Nevertheless, there is also evidence that global forces have been at work for a long time, in a way that links real wages to productivity trends in the same way as in countries with very different institutions and macroeconomic development.
Subjects: 
wage formation
economic history of Norway
structural breaks
labour market regulation
econometric models of inflation
JEL: 
C22
C31
E23
E24
E31
J38
J50
J51
N14
N34
O52
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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