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Polarization of the Nordic Labour Markets

Author

Listed:
  • Rita Asplund

    (The Research Institute of the Finnish Economy ETLA)

  • Erling Barth

    (Institute for Social Research, Oslo)

  • Per Lundborg

    (Swedish Institute for Social Research, Stockholm University)

  • Kjersti Misje Nilsen

    (Institute for Social Research, Oslo)

Abstract

Labour-market polarization is characterized by increased employment in occupations at the top but also at the bottom of the skills and wage distributions, followed by a relative decline in ‘middling’ occupations. This paper documents a polarization trend also in the Nordic labour markets and contrasts it to comparative findings for the USA. Analysis of the extent to which differences in wage development across skill groups have enhanced or attenuated this process of polarization in employment patterns suggests that the U-shaped pattern of employment change prevails also after controlling for concomitant changes in relative occupational wages. Hence, it seems that also the Nordic countries have experienced a shift from skill-biased technological change to non-routine-biased technological change – or, more likely, a combination of the two – and that this process has not been particularly dampened by compressed wage structures or relatively more rigid wages.

Suggested Citation

  • Rita Asplund & Erling Barth & Per Lundborg & Kjersti Misje Nilsen, 2011. "Polarization of the Nordic Labour Markets," Finnish Economic Papers, Finnish Economic Association, vol. 24(2), pages 87-110, Autumn.
    • Handle: RePEc:fep:journl:v:24:y:2011:i:2:p:87-110
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    References listed on IDEAS

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    Cited by:

    1. Tuomo Alasoini & Seppo Tuomivaara, 2023. "Occupational change, computer use and the complementarity effect in the digital age: Evidence from Finland," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 755-772, August.
    2. Roberto Iacono, 2018. "The Nordic Model of Economic Development and Welfare: Recent Developments and Future Prospects," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 53(4), pages 185-190, July.
    3. Petri Böckerman & Seppo Laaksonen & Jari Vainiomäki, 2013. "Is There Job Polarization at the Firm Level?," Working Papers 1391, Tampere University, Faculty of Management and Business, Economics.
    4. Fredrik Heyman & Fredrik Sjöholm, 2019. "Globalization, Job Tasks and the Demand for Different Occupations," Travail et Emploi, La DARES, vol. 0(1), pages 67-91.
    5. Heyman, Fredrik, 2016. "Job polarization, job tasks and the role of firms," Economics Letters, Elsevier, vol. 145(C), pages 246-251.
    6. Usabiaga, Carlos & Núñez, Fernando & Arendt, Lukasz & Gałecka-Burdziak, Ewa & Pater, Robert, 2022. "Skill requirements and labour polarisation: An association analysis based on Polish online job offers," Economic Modelling, Elsevier, vol. 115(C).
    7. Fonseca, Tiago & Lima, Francisco & Pereira, Sonia C., 2018. "Job polarization, technological change and routinization: Evidence for Portugal," Labour Economics, Elsevier, vol. 51(C), pages 317-339.
    8. Merja Kauhanen & Terhi Maczulskij, 2017. "Where do workers from declining routine jobs go and does migration matter?," Working Papers 314, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    9. Petri Böckerman & Seppo Laaksonen & Jari Vainiomäki, 2016. "Are jobs more polarized in ICT firms?," Working Papers 303, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    10. Dirk Antonczyk & Thomas DeLeire & Bernd Fitzenberger, 2018. "Polarization and Rising Wage Inequality: Comparing the U.S. and Germany," Econometrics, MDPI, vol. 6(2), pages 1-33, April.

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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