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Equal Pay for Unequal Work

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  • Flam, Harry

Abstract

Swedish labor unions pursue an egalitarian wage policy and have successfu lly squeezed wage differentials. The effects in the short run are a r ise in the wage of low-paid unskilled labor-as intended-and possibly also of high-paid skilled labor. But in the long-run, labor's income share falls, as does the wage of skilled labor and possibly even unsk illed labor. Some unskilled labor becomes unemployed in both the shor t and long run. Resources are shifted into the export-competing secto r and away from the import-competing sector. Copyright 1987 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Flam, Harry, 1987. " Equal Pay for Unequal Work," Scandinavian Journal of Economics, Wiley Blackwell, vol. 89(4), pages 435-450.
  • Handle: RePEc:bla:scandj:v:89:y:1987:i:4:p:435-50
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    Cited by:

    1. Douglas A. Hibbs, Jr. & Håkan Locking, 1995. "Solidarity Wage Policies and Industrial Productivity in Sweden," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 22, pages 95-108.
    2. Hibbs, Douglas A, Jr, 2000. "Bread and Peace Voting in U.S. Presidential Elections," Public Choice, Springer, vol. 104(1-2), pages 149-180, July.
    3. Hibbs, Douglas A, Jr & Locking, Hakan, 2000. "Wage Dispersion and Productive Efficiency: Evidence for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 755-782, October.
    4. Per-Anders Edin & Robert Topel, 1997. "Wage Policy and Restructuring: The Swedish Labor Market since 1960," NBER Chapters,in: The Welfare State in Transition: Reforming the Swedish Model, pages 155-202 National Bureau of Economic Research, Inc.
    5. Matthew J. Lindquist, 2005. "Capital-Skill Complementarity and Inequality in Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(4), pages 711-735, December.
    6. Fernandes, Marcelo, 2006. "Financial crashes as endogenous jumps: estimation, testing and forecasting," Journal of Economic Dynamics and Control, Elsevier, vol. 30(1), pages 111-141, January.
    7. Lindquist, Matthew J., 2005. "The welfare costs of union wage compression," European Economic Review, Elsevier, vol. 49(3), pages 639-658, April.

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