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Decentralized Public Sector Wage Determination: Wage Curve and Wage Comparison for Norwegian Teachers in the Pre‐WW2 Period
Author(s) -
Falch Torberg
Publication year - 2001
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/1467-9914.00168
Subject(s) - wage , efficiency wage , decentralization , economics , norwegian , labour economics , unemployment , public sector , private sector , wage share , period (music) , demographic economics , economy , economic growth , market economy , linguistics , philosophy , physics , acoustics
The recent trend towards decentralization of European public sector wage determination relaxes some of the central administered wage setting mechanisms developed in the post‐WW2 period. This paper discusses teacher wage determination in Norway in 1905–39, a period with a highly decentralized public sector wage formation. Separate wage equations for urban and rural areas are estimated. I find that the responsiveness to unemployment of the urban wage was of the same magnitude as in the post‐WW2 period private sector wage formation. In addition, the internal teacher labour market and local economic conditions influence the wage level. The rural wage mainly followed the urban wage.