The paper presents empirical evidence on wage formation in Norway using annual time series data for manufacturing industry. First, we show that long-run effects of consumer prices and taxes depend strongly on the exact definition of the empirical variables. Using the implicit factor income...

The paper presents empirical results for wage setting in the Norwegian local and central public sector. Our results imply that central and local government wages are completely autonomous processes both in the short-run and in the long-run. This suggests that the formal strong coordination of...