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Swimming with the Tide: Solidary Wage Policy and the Gender Earnings Gap

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  • Edin, Per-Anders
  • Richardson, Katarina

Abstract

This paper addresses the consequences 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 been partly counteracting. Changes in industry wage differentials have systematically worked against women, while 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 there was a dramatic reduction in overall wage inequality. Copyright 2002 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Edin, Per-Anders & Richardson, Katarina, 2002. " Swimming with the Tide: Solidary Wage Policy and the Gender Earnings Gap," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(1), pages 49-67.
  • Handle: RePEc:bla:scandj:v:104:y:2002:i:1:p:49-67
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    References listed on IDEAS

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    1. 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.
    2. Suen, Wing, 1997. "Decomposing Wage Residuals: Unmeasured Skill or Statistical Artifact?," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 555-566, July.
    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. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
    5. 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 29-62, Suppl..
    6. 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 410-442, June.
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    Citations

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    Cited by:

    1. 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, pages 135-155.
    2. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
    3. Claudia Olivetti, 2008. "Gender and the Labour Market: An International Perspective and the Case of Italy," Rivista di Politica Economica, SIPI Spa, vol. 98(3), pages 3-32, May-June.
    4. Francine D. Blau & Lawrence M. Kahn, 2006. "The U.S. Gender Pay Gap in the 1990S: Slowing Convergence," ILR Review, Cornell University, ILR School, pages 45-66.
    5. Giuseppe Bertola & Francine Blau & Lawrence Kahn, 2007. "Labor market institutions and demographic employment patterns," Journal of Population Economics, Springer;European Society for Population Economics, pages 833-867.
    6. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, pages 789-865.
    7. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
    8. Giuseppe Bertola & Francine Blau & Lawrence Kahn, 2007. "Labor market institutions and demographic employment patterns," Journal of Population Economics, Springer;European Society for Population Economics, pages 833-867.
    9. Hipolito Simon, 2011. "The Gender Gap in Earnings: An International Comparison with European Matched Employer-Employee Data," Post-Print hal-00686665, HAL.
    10. Lawrence M. Kahn, 2015. "Wage compression and the gender pay gap," IZA World of Labor, Institute for the Study of Labor (IZA), pages 150-150.
    11. 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).
    12. 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.
    13. Johansson, Mats & Katz, Katarina, 2007. "Wage differences between women and men in Sweden - the impact of skill mismatch," Working Paper Series 2007:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    14. 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.
    15. 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).
    16. Boris Kaiser, 2013. "Decomposing Differences in Arithmetic Means: A Doubly-Robust Estimation Approach," Diskussionsschriften dp1308, Universitaet Bern, Departement Volkswirtschaft.
    17. Jane Waldfogel & Susan Harkness, 1999. "The Family Gap in Pay: Evidence from Seven Industrialized Countries," LIS Working papers 219, LIS Cross-National Data Center in Luxembourg.
    18. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
    19. Eva Spring & Volker Grossmann, 2016. "Does bilateral trust across countries really affect international trade and factor mobility?," Empirical Economics, Springer, pages 103-136.
    20. Tatiana Damjanovic & Geethanjali Selvaretnam, 2015. "Economic Growth and Evolution of Gender Equality," Working Papers 2015_20, Business School - Economics, University of Glasgow.
    21. Henz, Ursula & Sundström, Marianne, 2001. "Partner Choice and Women's Paid Work in Sweden - The Role of Earnings," Working Paper Series 1/2000, Stockholm University, Swedish Institute for Social Research.
    22. 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.
    23. 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).
    24. Svenja Gärtner, 2013. "German Stagnation vs. Swedish Progression: Gender Wage Gaps in Comparison, 1960-2006," LIS Working papers 586, LIS Cross-National Data Center in Luxembourg.
    25. Dominique Meurs & Sophie Ponthieux, 2006. "L'écart des salaires entre les femmes et les hommes peut-il encore baisser ?," Économie et Statistique, Programme National Persée, vol. 398(1), pages 99-129.

    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • 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

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