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The War of Models: Determination of Wages and Employment in Swedish Private Sector

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  • Robert Plasman
  • Fran?ois Rycx

Abstract

The War of Models: Determination of Wages and Employment in Swedish Private Sector (di Robert Plasman, Fran?ois Rycx) - ABSTRACT: The purpose of this paper is to discriminate between competing models of wage and employment determination (right-to-manage, efficient bargaining and general bargaining models) using annual macro-data from the Swedish private sector covering the period 1960-93. Methodologically, the analysis relies on the Engle-Granger?s two-step estimation procedure and on non-nested tests. Phillips-Hansens?s non-parametric technique is used to obtain optimal and asymptotically normal long-run estimators. Our results show that the right-to-manage and the efficient bargaining models can be rejected in favour of the general bargaining model. Consequently, they stress the absence of a simple relation between the trade unions bargaining power and employment. JEL Classification: J50, C22, C52.

Suggested Citation

  • Robert Plasman & Fran?ois Rycx, 2001. "The War of Models: Determination of Wages and Employment in Swedish Private Sector," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2001(73).
    • Handle: RePEc:fan:steste:v:html10.3280/ste2001-073001
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    Cited by:

    1. Guy Navon & Ilan Tojerow, 2013. "Does Rent-sharing Profit Female and Male Workers? Evidence from Israeli Matched Employer–Employee Data," LABOUR, CEIS, vol. 27(3), pages 331-349, September.

    More about this item

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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