Wage determination in Norwegian industry is investigated using a panel of over 7,000 firms over seventeen years. A standard right-to-manage bargaining model serves as theoretical background for the empirical specification. Wage equations focusing on the relative importance of insider versus...

In many countries, it is customary that production continues under the terms of the old contract during wage negotiations (holdout), unless a work stoppage is initiated. This paper analyzes a model where the workers deliberately work less efficiently during a holdout, while the firm reduces...

Models with a single central trade union representing the whole labor market are often taken to illustrate the wage-setting process in the Scandinavian countries. This paper argues that the assumption of a single central trade union is not realistic. Therefore, the authors model an economy with...