Lønkurve for Danmark

In this paper we first discuss the concept of a "wage curve " and its relation to standard supply and demand analysis. Second, we follow the tradition of Blanch/lower and Oswald (1994) and estimate some wage curves for Denmark on cross section data for 1994. Our wage data contains the wages for a number of different locations and categories labour as reported directly by firms. We do find the elasticity of the 1994 wage curve for Denmark to have the expected negative sign. But in contrast to the results of studies for many other countries, the elasticity is significantly below -0.1, suggesting less wage flexibility on the Danish labour market in comparison with these other countries.