Wage Cyclicality and Composition Bias in the Norwegian Economy* |
| |
Authors: | Bjorn Dapi |
| |
Affiliation: | Statistics Norway, NO-0177 Oslo, Norway |
| |
Abstract: | Using employer–employee register data, I estimate the real wage semi-elasticity of aggregate unemployment for the years 1997–2014 in the Norwegian private sector. An increase of 1 percentage point in aggregate unemployment is associated with an average decrease of 2 percent in (total) daily wages. Although Norway has influential labor market institutions, wages in the Norwegian private sector are quite sensitive to business-cycle fluctuations. Gender differences in wage cyclicality and compositional variation are considerable. Men have significantly more procyclical wages than women, and appear more likely to upgrade procyclically to better-paying firms. |
| |
Keywords: | Job upgrading labor market institutions real wage rigidity |
|
|