Does Egalitarian Wage Policy Cause Wage Drift?: An Empirical Study of Sweden 1960-1979
1982 (English)Report (Other academic)
This paper tests the hypothesis that egalitarian wage policy in Sweden has constituted an independent inflationary disturbance, in the sense that the magnitude of low-wage adjustments in the centrally negotiated wage agreements is positively related to the overall level of wage drift. A measure of negotiated relative wage increases for a low-wage group is constructed and introduced in a Phillips curve type model to explain Swedish wage drift 1960-1979. A significant but small effect of the low-wage adjustments on wage drift can be observed. The effect of egalitarian wage policy on labor market disequilibrium is also tested, but no such effects can de discerned.
Place, publisher, year, edition, pages
Stockholm: IIES , 1982. , 52 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 203
IdentifiersURN: urn:nbn:se:su:diva-41432OAI: oai:DiVA.org:su-41432DiVA: diva2:330303