IDEAS home Printed from https://ideas.repec.org/a/wly/fistud/v45y2024i2p205-224.html

Changing patterns of inequality in Norway: the roles of gender, education, immigration and unions

Author

Listed:
  • Patrick Bennett
  • Kjell Salvanes

Abstract

We assess the evolution of inequality over time in Norway and the underlying factors which determine such changes. Inequality is low in Norway, and remains relatively unchanged from 1980 to 2019. However, these aggregate measures mask persistent inequalities across sex, education and immigrant status. Among men, inequality increases from 1980 while the opposite is true for women. Low‐educated workers fare increasingly worse over time relative to middle‐ and high‐educated workers. Despite this, the earnings of women lag behind those of lower‐educated men and considerable gender gaps exist. While immigration increases considerably, immigration itself does not drive the rise in inequality among men. Decomposing the importance of unions for earnings reveals that the declining importance of unionisation for earnings among men in the bottom half of the distribution may be an important factor behind rising inequality.

Suggested Citation

  • Patrick Bennett & Kjell Salvanes, 2024. "Changing patterns of inequality in Norway: the roles of gender, education, immigration and unions," Fiscal Studies, John Wiley & Sons, vol. 45(2), pages 205-224, June.
  • Handle: RePEc:wly:fistud:v:45:y:2024:i:2:p:205-224
    DOI: 10.1111/1475-5890.12372
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1475-5890.12372
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1475-5890.12372?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Björklund, Anders & Salvanes, Kjell G., 2011. "Education and Family Background: Mechanisms and Policies," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 3, chapter 3, pages 201-247, Elsevier.
    2. Dan Black & Terra McKinnish & Seth Sanders, 2005. "The Economic Impact Of The Coal Boom And Bust," Economic Journal, Royal Economic Society, vol. 115(503), pages 449-476, April.
    3. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    4. Bennett, Patrick & Ravetti, Chiara & Wong, Po Yin, 2021. "Losing in a boom: Long-term consequences of a local economic shock for female labour market outcomes," Labour Economics, Elsevier, vol. 73(C).
    5. Gordon B. Dahl & Katrine V. Løken & Magne Mogstad & Kari Vea Salvanes, 2016. "What Is the Case for Paid Maternity Leave?," The Review of Economics and Statistics, MIT Press, vol. 98(4), pages 655-670, October.
    6. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1279-1333.
    7. Ingvild Almås & Tarjei Havnes & Magne Mogstad, 2011. "Baby booming inequality? Demographic change and earnings inequality in Norway, 1967–2000," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(4), pages 629-650, December.
    8. Kahn, Lawrence M, 1998. "Against the Wind: Bargaining Recentralisation and Wage Inequality in Norway 1987-91," Economic Journal, Royal Economic Society, vol. 108(448), pages 603-645, May.
    9. Melissa S. Kearney & Riley Wilson, 2018. "Male Earnings, Marriageable Men, and Nonmarital Fertility: Evidence from the Fracking Boom," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 678-690, October.
    10. Sergio P. Firpo & Nicole M. Fortin & Thomas Lemieux, 2018. "Decomposing Wage Distributions Using Recentered Influence Function Regressions," Econometrics, MDPI, vol. 6(2), pages 1-40, May.
    11. David Autor & Andreas Kostøl & Magne Mogstad & Bradley Setzler, 2019. "Disability Benefits, Consumption Insurance, and Household Labor Supply," American Economic Review, American Economic Association, vol. 109(7), pages 2613-2654, July.
    12. Manudeep Bhuller & Karl Ove Moene & Magne Mogstad & Ola L. Vestad, 2022. "Facts and Fantasies about Wage Setting and Collective Bargaining," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 29-52, Fall.
    13. Aaberge, Rolf & Atkinson, Anthony B. & Modalsli, Jørgen, 2020. "Estimating long-run income inequality from mixed tabular data: Empirical evidence from Norway, 1875–2017," Journal of Public Economics, Elsevier, vol. 187(C).
    14. Havnes, Tarjei & Mogstad, Magne, 2015. "Is universal child care leveling the playing field?," Journal of Public Economics, Elsevier, vol. 127(C), pages 100-114.
    15. Havnes, Tarjei & Mogstad, Magne, 2011. "Money for nothing? Universal child care and maternal employment," Journal of Public Economics, Elsevier, vol. 95(11), pages 1455-1465.
    16. Rolf Aaberge & Magne Mogstad, 2015. "Inequality in current and lifetime income," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(2), pages 217-230, February.
    17. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue nov.
    18. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    19. Riley Wilson, 2022. "Moving to Economic Opportunity: The Migration Response to the Fracking Boom," Journal of Human Resources, University of Wisconsin Press, vol. 57(3), pages 918-955.
    20. Andreas Ravndal Kostol & Magne Mogstad, 2014. "How Financial Incentives Induce Disability Insurance Recipients to Return to Work," American Economic Review, American Economic Association, vol. 104(2), pages 624-655, February.
    21. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2011. "How Destructive Is Creative Destruction? Effects Of Job Loss On Job Mobility, Withdrawal And Income," Journal of the European Economic Association, European Economic Association, vol. 9(5), pages 840-870, October.
    22. Salvanes, Kjell G & Dodini, Samuel & Willén, Alexander, 2021. "The Dynamics of Power in Labor Markets: Monopolistic Unions versus Monopsonistic Employers," CEPR Discussion Papers 16834, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrick Bennett & Julian Vedeler Johnsen, 2025. "Intersecting Shocks: The Combined Labor Market Impacts of Automation and Immigration," CESifo Working Paper Series 12217, CESifo.
    2. Magne Mogstad & Kjell G. Salvanes & Gaute Torsvik, 2025. "Income Equality in the Nordic Countries: Myths, Facts, and Lessons," Journal of Economic Literature, American Economic Association, vol. 63(3), pages 791-839, September.
    3. Bennett, Patrick & Ravetti, Chiara & Wong, Po Yin, 2021. "Losing in a boom: Long-term consequences of a local economic shock for female labour market outcomes," Labour Economics, Elsevier, vol. 73(C).
    4. Caselli, Mauro & Fracasso, Andrea & Scicchitano, Sergio & Traverso, Silvio & Tundis, Enrico, 2025. "What workers and robots do: An activity-based analysis of the impact of robotization on changes in local employment," Research Policy, Elsevier, vol. 54(1).
    5. Heyman, Fredrik & Olsson, Martin, 2022. "Long-Run Effects of Technological Change: The Impact of Automation and on Intergenerational Mobility," Working Paper Series 1451, Research Institute of Industrial Economics, revised 12 Dec 2025.
    6. Lo Bello,Salvatore & Sanchez Puerta,Maria Laura & Winkler,Hernan Jorge, 2019. "From Ghana to America : The Skill Content of Jobs and Economic Development," Policy Research Working Paper Series 8758, The World Bank.
    7. Andrea Salvatori & Seetha Menon & Wouter Zwysen, 2018. "The effect of computer use on job quality: Evidence from Europe," OECD Social, Employment and Migration Working Papers 200, OECD Publishing.
    8. Daisuke Adachi & Daiji Kawaguchi & Yukiko U. Saito, 2024. "Robots and Employment: Evidence from Japan, 1978–2017," Journal of Labor Economics, University of Chicago Press, vol. 42(2), pages 591-634.
    9. Kaltenberg, Mary & Foster-McGregor, Neil, 2020. "The impact of automation on inequality across Europe," MERIT Working Papers 2020-009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. David Autor & Caroline Chin & Anna Salomons & Bryan Seegmiller, 2024. "New Frontiers: The Origins and Content of New Work, 1940–2018," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(3), pages 1399-1465.
    11. Brand, Claus & Obstbaum, Meri & Coenen, Günter & Sondermann, David & Lydon, Reamonn & Ajevskis, Viktors & Hammermann, Felix & Angino, Siria & Hernborg, Nils & Basso, Henrique & Hertweck, Matthias & Bi, 2021. "Employment and the conduct of monetary policy in the euro area," Occasional Paper Series 275, European Central Bank.
    12. Muendler, Marc-Andreas, 2017. "Trade, technology, and prosperity: An account of evidence from a labor-market perspective," WTO Staff Working Papers ERSD-2017-15, World Trade Organization (WTO), Economic Research and Statistics Division.
    13. Dauth, Wolfgang & Findeisen, Sebastian & Südekum, Jens & Wößner, Nicole, 2017. "German robots - the impact of industrial robots on workers," IAB-Discussion Paper 201730, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Kikuchi, Shinnosuke & Fujiwara, Ippei & Shirota, Toyoichiro, 2024. "Automation and disappearing routine occupations in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 74(C).
    15. Franziska Brall & Ramona Schmid, 2023. "Automation, robots and wage inequality in Germany: A decomposition analysis," LABOUR, CEIS, vol. 37(1), pages 33-95, March.
    16. Jérôme Adda & Yarine Fawaz, 2020. "The Health Toll of Import Competition," The Economic Journal, Royal Economic Society, vol. 130(630), pages 1501-1540.
    17. Patrick Bennett & Aline Butikofer & Kjell G. Salvanes & Darina Steskal, 2022. "Changes in Urban Wages, Jobs, and Workers from 1958-2017," Working Papers 202214, University of Liverpool, Department of Economics.
    18. Domini, Giacomo & Grazzi, Marco & Moschella, Daniele & Treibich, Tania, 2021. "Threats and opportunities in the digital era: Automation spikes and employment dynamics," Research Policy, Elsevier, vol. 50(7).
    19. Bekhtiar, Karim, 2024. "Robotization, Internal Migration and Rural Decline," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302396, Verein für Socialpolitik / German Economic Association.
    20. Ljubica Nedelkoska & Frank Neffke, 2019. "Skill Mismatch and Skill Transferability: Review of Concepts and Measurements," Papers in Evolutionary Economic Geography (PEEG) 1921, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2019.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:fistud:v:45:y:2024:i:2:p:205-224. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1475-5890 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.