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Solidarity as an Engine for Economic Change: The impact of Swedish and US political ideology on wage differentials and structural change

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  • Wulfgramm, Melike

    (Groningen University)

Abstract

This paper investigates the impact of interindustry wage distribution on structural change in the Swedish and US manufacturing sector in the 1970s. Structural change in the centralized Swedish labour market reacts far more positive to market pressures towards wage changes than structural change in the decentralized US labour market. Support for the Rehn-Meidner model of solidarity wages and structural change is found. It is shown how opposing ideologies and policy making influence not only the wage pattern but also industry structures of economies.

Suggested Citation

  • Wulfgramm, Melike, 2007. "Solidarity as an Engine for Economic Change: The impact of Swedish and US political ideology on wage differentials and structural change," GGDC Research Memorandum GD-97, Groningen Growth and Development Centre, University of Groningen.
    • Handle: RePEc:gro:rugggd:gd-97
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    File URL: http://irs.ub.rug.nl/ppn/317331620
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    References listed on IDEAS

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    1. 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 755-782, October.
    2. Erixon, Lennart, 2000. "A Swedish Economic Policy - The Theory, Application and Validity of the Rehn-Meidner Model," Research Papers in Economics 2000:13, Stockholm University, Department of Economics.
    3. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
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