Originally published in 1978. The present study had grown out of the deliberations of wage policy at the 1971 Congress of LO, the Swedish Confederation of Trade Unions. For many years the LO had pursued a policy of solidarity in wage policy – a policy which sought to relate pay to the nature of the work which an employee carried out, and not to the capacity or ability of the employer to pay. Several issues related to this policy are explored. This study was extremely controversial when first published in Sweden, and will therefore be of great interest to students of economic history and democracy.
With the abolition of exchange rates the role of wage formation in the European Monetary Union changes fundamentally and national economic policy in particular fiscal policy faces new restrictions. These are analysed in the first two chapters. A major impact is expected for wage formation. To achieve a convergence of economic developments wage finding has to follow in all EMU member countries basically the same rules. An empirical investigation using econometric methods show that this is presently not yet the case. In particular in the southern European countries wage finding is different from that in the rest of the EMU. Frequently the introduction of Euro is perceived as a signal to lower wages all over Europe to overcome the dismal employment situation. The book addresses the question whether such a race for lower wages is appropriate in terms of employment creation.
Originally published in 1978. The present study had grown out of the deliberations of wage policy at the 1971 Congress of LO, the Swedish Confederation of Trade Unions. For many years the LO had pursued a policy of solidarity in wage policy – a policy which sought to relate pay to the nature of the work which an employee carried out, and not to the capacity or ability of the employer to pay. Several issues related to this policy are explored. This study was extremely controversial when first published in Sweden, and will therefore be of great interest to students of economic history and democracy.
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