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Swimming with the tide: solidarity wage policy and the gender earnings gap

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  • Edin, Per-Anders

    ()
    (IFAU - Office of Labour Market Policy Evaluation)

  • Richardson, Katarina

    ()
    (IFAU - Office of Labour Market Policy Evaluation)

Abstract

The purpose of this paper is to examine the role of wage compression for the gender wage gap in Sweden during the period 1968-1991. We find that the effects of changes in the wage structure on women's wages have varied over time and have had partly counteracting effects. Changes in industry wage differentials have systematically worked against women, while the changes in the returns to human capital and unobserved characteristics have contributed to reductions in the gender wage gap. Changes in the wage structure were particularly important between 1968 and 1974, when the reduction of overall wage inequality was dramatic. In 1981, however, the wage compression effect accounted only for a minor proportion of women's relative wage gains, as compared to 1974. At this time, women gained in relative wages mainly because discrimination was mitigated and/or the gender gap in unobserved skills was reduced. Between 1981 and 1991 there is a small increase in the gender wage gap. This small increase seems to have been driven by changed inter-industry wage differentials

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 1999:3.

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Length: 36 pages
Date of creation: 23 Jun 1999
Date of revision:
Publication status: Published in Scandinavian Journal of Economics, 2002, pages 49-67.
Handle: RePEc:hhs:ifauwp:1999_003

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Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
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Web page: http://www.ifau.se/
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Keywords: Gender wage gap; Wage structure;

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References

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  1. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  2. Albrecht, J & Edin, P-A & Sundstrom, M & Vroman, S-B, 1996. "Career Interruptions and Subsequent Earning : A Reexamination Using Swedish Data," Papers 1996-23, Uppsala - Working Paper Series.
  3. Siv Gustafsson & Frank Stafford, 1992. "Child Care Subsidies and Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 204-230.
  4. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
  5. Per-Anders Edin & Bertil Holmlund, 1995. "The Swedish Wage Structure: The Rise and Fall of Solidarity Wage Policy?," NBER Chapters, in: Differences and Changes in Wage Structures, pages 307-344 National Bureau of Economic Research, Inc.
  6. Suen, Wing, 1997. "Decomposing Wage Residuals: Unmeasured Skill or Statistical Artifact?," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 555-66, July.
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Cited by:
  1. Francine D. Blau & Lawrence M. Kahn, 2006. "The U.S. gender pay gap in the 1990s: slowing convergence," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(1), pages 45-66, October.
  2. Datta Gupta, Nabanita & Smith, Nina & Verner, Mette, 2006. "Child Care and Parental Leave in the Nordic Countries: A Model to Aspire to?," IZA Discussion Papers 2014, Institute for the Study of Labor (IZA).
  3. Brenda Gannon & Robert Plasman & Francois Rycx & Ilan Tojerow, 2007. "Inter-Industry Wage Differentials and the Gender Wage Gap: Evidence from European Countries," The Economic and Social Review, Economic and Social Studies, vol. 38(1), pages 135-155.
  4. Claudia Olivetti, . "Gender and the Labour Market: An International Perspective and the case of Italy," Boston University - Department of Economics - Working Papers Series wp2009-010, Boston University - Department of Economics.
  5. Datta Gupta, Nabanita & Oaxaca, Ronald L. & Smith, Nina, 2003. "Swimming Upstream, Floating Downstream: Comparing Women's Relative Wage Positions in the U.S. and Denmark," IZA Discussion Papers 756, Institute for the Study of Labor (IZA).
  6. Giuseppe Bertola & Francine D. Blau & Lawrence M. Kahn, 2002. "Labor Market Institutions and Demographic Employment Patterns," NBER Working Papers 9043, National Bureau of Economic Research, Inc.
  7. Elisabeth Hermann Frederiksen, 2006. "An Equilibrium Analysis of the Gender Wage Gap," EPRU Working Paper Series 06-08, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  8. Francine D. Blau & Lawrence M. Kahn, 2001. "Understanding International Differences in the Gender Pay Gap," NBER Working Papers 8200, National Bureau of Economic Research, Inc.
  9. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," ZEW Discussion Papers 10-014, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  10. Özcan, Gülay, 2010. "Sector Differences in Glass Ceiling in Sweden -Is It Tied to Occupational Segregation?," Research Papers in Economics 2010:9, Stockholm University, Department of Economics.
  11. Nabanita Datta Gupta & Nina Smith & Mette Verner, 2008. "PERSPECTIVE ARTICLE: The impact of Nordic countries’ family friendly policies on employment, wages, and children," Review of Economics of the Household, Springer, vol. 6(1), pages 65-89, March.
  12. Carlsson, Magnus & Rooth, Dan-Olof, 2008. "An Experimental Study of Sex Segregation in the Swedish Labour Market: Is Discrimination the Explanation?," IZA Discussion Papers 3811, Institute for the Study of Labor (IZA).
  13. Henz, Ursula & Sundström, Marianne, 2001. "Partner Choice and Women's Paid Work in Sweden - The Role of Earnings," Working Paper Series 1/2000, Swedish Institute for Social Research.

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