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Equal Pay for Unequal Work

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Author Info

  • Flam, Harry

Abstract

Swedish labor unions pursue an egalitarian wage policy and have successfu lly squeezed wage differentials. The effects in the short run are a r ise in the wage of low-paid unskilled labor-as intended-and possibly also of high-paid skilled labor. But in the long-run, labor's income share falls, as does the wage of skilled labor and possibly even unsk illed labor. Some unskilled labor becomes unemployed in both the shor t and long run. Resources are shifted into the export-competing secto r and away from the import-competing sector. Copyright 1987 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 89 (1987)
Issue (Month): 4 ()
Pages: 435-50

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Handle: RePEc:bla:scandj:v:89:y:1987:i:4:p:435-50

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Cited by:
  1. Hibbs Jr., Douglas A., 2000. "Bread and Peace Voting in U.S. Presidential Elections," Working Papers in Economics 20, University of Gothenburg, Department of Economics.
  2. Lindquist, Matthew J., 2005. "The welfare costs of union wage compression," European Economic Review, Elsevier, vol. 49(3), pages 639-658, April.
  3. Douglas A. Hibbs, Jr. & Håkan Locking, 1995. "Solidarity Wage Policies and Industrial Productivity in Sweden," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 22, pages 95-108.
  4. Hibbs, Douglas A, Jr & Locking, Hakan, 2000. "Wage Dispersion and Productive Efficiency: Evidence for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 755-82, October.
  5. Fernandes, Marcelo, 2006. "Financial crashes as endogenous jumps: estimation, testing and forecasting," Journal of Economic Dynamics and Control, Elsevier, vol. 30(1), pages 111-141, January.
  6. Lindquist, Matthew J., 2005. "Capital-Skill Complementarity and Inequality in Sweden," Working Paper Series 2/2005, Swedish Institute for Social Research.

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