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Wage Bargaining and Political Strength in the Public Sector

Falch, Torberg; Strøm, Bjarne
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URI
http://hdl.handle.net/11250/267145
Date
2003
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  • Institutt for samfunnsøkonomi [678]
Abstract
This paper analysis the link between political strength and public sector wages using a unique matched individual-employer data set for Norwegian local governments during the period 1990-1998. The results indicate that political strength, measured in several ways, has a positive effect on wages, while administrative strength, measured by the tenure of the chief executive, has a negative effect. The positive effect of political strength is consistent with a model in which the budgetary process is a multistage game and employment is determined in an interaction with interest groups prior to the wage bargain.
Publisher
Institutt for samfunnsøkonomi
Series
Working Paper Series, 1503-299X; 2003:6

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