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

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  • Per‐Anders Edin
  • Katarina Richardson

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. JEL classification: J16; J31; J51

Suggested Citation

  • Per‐Anders Edin & Katarina Richardson, 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, March.
    • Handle: RePEc:bla:scandj:v:104:y:2002:i:1:p:49-67
    DOI: 10.1111/1467-9442.00271
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    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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