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The Wage Bargaining Structure in Norway and Sweden and its Influenceon Real Wage Developments
Author:
Mr. Alun H. Thomas
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Series:
IMF Working Papers
Volume/Issue:
Volume 1998: Issue 174
Language:
English
Publication Date:
01 Dec 1998
DOI:
https://doi.org/10.5089/9781451977059.001
ISBN:
9781451977059
ISSN:
1018-5941
Pages:
25
Keywords:
WP; real wage; wage drift; union; nominal wage; wage bargaining; centralized; decentralized; tradables; services; real wage change; aggregate real wage; productivity variable; real wage growth; real wage development; real wages in Norway; Real wages; Wages; Wage adjustments; Unemployment rate
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund