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Wage Linkages Between Private and Public Sectors in Sweden
Author(s) -
Holmlund Bertil,
Ohlsson Henry
Publication year - 1992
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/j.1467-9914.1992.tb00240.x
Subject(s) - wage , economics , private sector , unemployment , public sector , granger causality , labour economics , estimation , low wage , efficiency wage , macroeconomics , econometrics , economy , economic growth , management
. The paper examines wage linkages between private and public sectors in Sweden by means of Granger causality tests and estimation of error correction models. Wage changes in central and local governments are Granger caused by private sector wage changes. Public sector wage increases involve error correction mechanisms; the lower the relative wage in the past, the higher the current wage increases. Increases in unemployment are associated with relative wage improvements for public sector employees.