Wage coordination plays an important role in macroeconomic stabilization. Pattern wage bargaining systems have been common in Europe, but in different forms, and with different degrees of success in terms of actual coordination reached. A recently published paper written by Marit Gjelsvik, Ragnar Nymoen and Victoria Sparrman focuses on wage formation in Norway, a small open economy, where it is custom to regard the manufacturing industry as the wage leader. The authors estimate a model of wage formation in manufacturing and in two other sectors. Deciding cointegration rank is an important step in the analysis, economically as well statistically. In combination with simultaneous equation modelling, the cointegration analysis provides evidence that collective wage negotiations in manufacturing have defined wage norms for the rest of the economy over the period 1980(1)–2014(4).
The paper is titled «Cointegration and Structure in Norwegian Wage–Price Dynamics» and is published in Econometrics 2020, 8(3), 29; https://doi.org/10.3390/econometrics8030029
The article belongs to the Special Issue Celebrated Econometricians: Katarina Juselius and Søren Johansen
Earlier this year, Simon Dalnoki published a research paper in the Norwegian Journal Samfunnsøkonomen: Empirisk modellering av systemet for norsk lønndannelse.
Posted 14 August 2020