Holmlund, Bertil - 2012 - This version: April 18, 2012
The paper studies wage and employment determination in the Swedish business sector from the mid-1910s to the late 1930s … by a period of sharp deflation where nominal wages and prices fell by 30 percent and unemployment increased from 5 to 30 … percent. We examine whether relatively standard wage and employment equations can account for the volatile economic …
