Prices, productivity, and wage bargaining in open economies

Anders Forslund; Nils Gottfries; Andreas Westermark

According to the standard union bargaining model, unemployment benefits should have big effects on wages, but product market prices and productivity should play no role in the wage bargain. We formulate an alternative strategic bargaining model, where labour and product market conditions together determine wages. A wage equation is derived and estimated on aggregate data for the Nordic countries. Wages are found to depend on unemployment and the replacement ratio, but also on productivity, international prices and exchange rates. There is evidence of considerable nominal wage rigidity. Exchange rate changes have large and persistent effects on competitiveness.

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Year of publication:	2008 ; rev.
Authors:	Forslund, Anders ; Gottfries, Nils ; Westermark, Andreas
Publisher:	Uppsala : Uppsala Univ., Dep. of Economics
Subject:	non-cooperative bargain \| efficiency wage \| turnover \| wage share \| wage curve \| Verhandlungstheorie des Lohnes \| Collective bargaining theory \| Effizienzlohn \| Efficiency wages \| Arbeitsmobilität \| Labour mobility \| Offene Volkswirtschaft \| Open economy \| Produktivität \| Productivity \| Lohnrigidität \| Wage rigidity \| Tarifverhandlungen \| Collective bargaining \| Lohnquote \| Labor share \| Arbeitsproduktivität \| Labour productivity

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Extent:	Online-Ressource (32 S.) graph. Darst.
Series:	Working papers / Department of Economics, Uppsala University. - Uppsala : [Verlag nicht ermittelbar], ISSN 1653-6975, ZDB-ID 2102298-7. - Vol. 2005:18rev.]
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/83129 [Handle]
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; F33 - International Monetary Arrangements and Institutions ; F41 - Open Economy Macroeconomics ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc ; J51 - Trade Unions: Objectives Structure, and Effects ; J63 - Turnover; Vacancies; Layoffs ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10010128001