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Wage Dispersion and Job Turnover: Evidence from Sweden

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Author Info

  • Heyman, Fredrik

    (Trade Union Institute for Economic Research)

Abstract

This paper uses Swedish establishment-level panel data to test the hypothesis of a positive relation between the degree of wage compression and job reallocation as proposed by Bertola and Rogerson (1997). The effect of wage dispersion on job turnover is negative and significant in the manufacturing sector. The wage com-pression effect is stronger on job destruction than on job creation, suggesting that wages are more downward than upward rigid. Further results include (i) a strong positive relationship between the industry share of temporary employees and job turnover and (ii) a negative relationship between the amount of working-time flexibility and job reallocation.

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File URL: http://swopec.hhs.se/fiefwp/papers/WP181.pdf
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Bibliographic Info

Paper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 181.

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Length: 28 pages
Date of creation: 11 Nov 2002
Date of revision:
Handle: RePEc:hhs:fiefwp:0181

Note: This paper is Chapter 2 of my 2002 Stockholm School of Economics Ph.D. thesis.
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Related research

Keywords: Job creation and job destruction; Wage dispersion; Temporary employment contracts; Panel data;

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Cited by:
  1. Lundborg, Per, 2005. "Wage Fairness, Growth and the Utilization of R&D Workers," Working Paper Series 206, Trade Union Institute for Economic Research.
  2. Lundborg, Per, 2005. "Wage Theories for the Swedish Labour Market," Working Paper Series 207, Trade Union Institute for Economic Research.
  3. Gómez-Salvador, Ramón & Messina, Julián & Vallanti, Giovanna, 2004. "Gross job flows and institutions in Europe," Working Paper Series 0318, European Central Bank.
  4. Selén, Jan & Ståhlberg, Ann-Charlotte, 2004. "Wage and Compensation Inequality — How Different?," Working Paper Series 197, Trade Union Institute for Economic Research.

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