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A European type wage equation from an American type labour market : some evidence from a panel of Norwegian manufacturing industries in the 1930s

Bårdsen, Gunnar; Klovland, Jan Tore; Doornik, Jurgen A.
Working paper
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URI
http://hdl.handle.net/11250/162774
Date
2003-09
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  • Discussion papers (SAM) [638]
Abstract
Using a newly constructed panel of manufacturing industry data for interwar

Norway, we estimate a long-run wage curve for the 1930s that has all the modern

features of being homogeneous in prices, proportional to productivity, and having

an unemployment elasticity of -0.1. This result is more typical of contemporary

European than U.S. wage equations, even if the labour market in interwar Norway

possessed distinctively more American type features than those associated with

present-day European welfare states. We also present some new Monte Carlo evidence on the properties of the estimators used.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2003:16

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