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...

This paper presents an analysis of wage formation in the Norwegian private sector using data for individual workers matched with firm level information and regional unemployment. A key issue is to test whether or not firm specific variables affect individual wages after controlling for...

Using panel data for Norwegian industries, we establish a significant permanent relation between industry wages and industry profitability. The estimated long-run insider weight is above 0.2 and stable both over time and across industries. Industry wages are significantly affected by aggregate...

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...

The paper presents an efficiency wage model where worker effort depends on own wages relative both to wages of other workers in the firm and to similar workers in other firms. First, we show how the Solow conditions are modified if internal comparison effects are at work. Second, we discuss the...

Using panel data for 117 Norwegian industries from 1966 to 1987, the author shows that industry wages are significantly affected by industry performance. Insider effects are more important in expanding industries as compared to declining ones and most responsive to insider variables in good...

A detailed analysis is provided of the shape of the wage curve using annual time series for Norwegian manufacturing. The main results are summarized as follows. Unemployment affects wages significantly, and we provide evidence in favour of a monotonically decreasing but highly non-linear wage...