Wage Dispersion between and within Plants: Sweden 1985-2000
58 Pages Posted: 14 Apr 2007 Last revised: 30 Jan 2022
Date Written: April 2007
Abstract
The paper describes the Swedish wage distribution and how it correlates with worker mobility and plant-specific factors. It is well known that wage inequality has increased in Sweden since the mid-1980s. However, little evidence has so far been available as to whether this development reflects increased dispersion between plants, between individuals in the same plant, or both. We use a new linked employer-employee data set and discover that a trend rise in between-plant wage inequality account for the entire increase in wage dispersion. This pattern, which remains when we control for observable individual human capital characteristics, may reflect increased sorting of workers by skill levels and/or increased scope for rent sharing in local wage negotiations. Our discussion suggests that both factors may have become more important.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Consequences of Employment Protection? the Case of the Americans with Disabilities Act
By Daron Acemoglu and Joshua D. Angrist
-
Temporary Jobs: Stepping Stones or Dead Ends?
By Alison L. Booth, Marco Francesconi, ...
-
Temporary Jobs, Employment Protection and Labor Market Performance
By Pierre Cahuc and Fabien Postel-vinay
-
The Cost of Job Security Regulation: Evidence from Latin American Labor Markets
By James J. Heckman and Carmen Pages
-
Why Do Temporary Help Firms Provide Free General Skills Training?
-
Drawing Lessons from the Boom of Temporary Jobs in Spain
By Juan Jose Dolado, Carlos García Serrano, ...
-
Drawing Lessons from the Boom of Temporary Jobs in Spain
By Juan F. Jimeno, Juan Jose Dolado, ...
-
Why Do Temporary Help Firms Provide Free General Skills Training?