Unionization and the Evolution of the Wage Distribution in Sweden: 1968 to 2000
AbstractWe examine the evolution of the Swedish wage distribution over the periods 1968-1981 and 1981-2000. The first period was the heyday of the Swedish solidarity wage policy with strongly equalization clauses in the central wage agreements. During the second period, there was more scope for firm-specific factors to affect wages. We find a remarkable compression of wages across the distribution in the first period, but in the second period, wage growth was quite uniform across the distribution. We decompose these changes across the distribution into two components – those due to changes in the distribution of characteristics such as education and experience and those due to changes in the distribution of returns to those characteristics. The wage compression between 1968 and 1981 was driven by changes in the distribution of returns, but between 1981 and 2000, the change in the distribution of returns was neutral with respect to inequality.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4246.
Length: 32 pages
Date of creation: Jun 2009
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Other versions of this item:
- James Albrecht & Anders Bj?rklund & Susan Vroman, 2011. "Unionization and the Evolution of the Wage Distribution in Sweden: 1968 to 2000," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 64(5), pages 1039-1057, October.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-11 (All new papers)
- NEP-BEC-2009-07-11 (Business Economics)
- NEP-HIS-2009-07-11 (Business, Economic & Financial History)
- NEP-LAB-2009-07-11 (Labour Economics)
- NEP-LTV-2009-07-11 (Unemployment, Inequality & Poverty)
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