Discussion Papers no. 259
Norwegian manufacturing 1967-1998
Wage and profitability
Economic theories of imperfectly competitive labour markets predict that wages are linked to profits. In spite of this, profit variables are not explicitly specified in empirical models of wage formation that otherwise are appealing. Does this mean that theory overplays the role of profitability in wage formation? The answer is probably not: Using Norwegian wage formation as an example, we model the dereminants of profitability within a vector autoregressive model and show that existing wage equations that have been successful empirically in fact contain a close linkage between wage setting and profits.
Om publikasjonen
- Tittel
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Wage and profitability. Norwegian manufacturing 1967-1998
- Ansvarlige
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Roger Bjørnstad, Ragnar Nymoen
- Serie og -nummer
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Discussion Papers no. 259
- Utgiver
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Statistics Norway, Research Department
- Emne
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Discussion Papers
- Antall sider
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33
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
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