The Wage Bargaining Structure in Norway and Sweden and its Influenceon Real Wage Developments

December 1, 1998

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Alun H. Thomas The Wage Bargaining Structure in Norway and Sweden and its Influenceon Real Wage Developments, (USA: International Monetary Fund, 1998) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper investigates the determinants of wages in the tradables and service sectors in Norway and Sweden. Tradables wages are determined by their own productivity growth whereas service sector wages are influenced by wage growth in the tradables sector. The traditional strong sensitivity of the real wage to changes in the unemployment rate has been virtually eliminated since the recessionary period in the early 1990s in Sweden, and real wages have grown faster than macroeconomic factors alone would suggest. In contrast, real wages have become more sensitive to cyclical conditions in Norway and have grown less rapidly than macroeconomic factors indicate. These changes in the wage process have hindered the development of private sector employment in Sweden but have stimulated private sector employment in Norway.

Subject: Labor, Labor markets, Real wages, Unemployment rate, Wage adjustments, Wage bargaining, Wages

Keywords: Aggregate real wage, Centralized, Decentralized, Nominal wage, Productivity variable, Real wage, Real wage change, Real wage development, Real wage growth, Real wages, Real wages in Norway, Services, Tradables, Unemployment rate, Union, Wage adjustments, Wage bargaining, Wage drift, Wages, WP

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1998/174
Stock No:

WPIEA1741998
ISBN:

9781451977059
ISSN:

1018-5941

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