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Wage and Labor Mobility in Denmark, 1980-2000

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  • Tor Eriksson
  • Niels Westergaard-Nielsen

Abstract

This paper consists of three parts. First, we briefly describe some key features of the labor market in Denmark, some of which contribute to the Danish labor markets behaving quite differently from those in many other European countries. The next two parts exploit detailed linked employer-employee data. In the second part we document in some detail an important aspect of the functioning and flexibility of the labor markets in Denmark: the high level of worker mobility. We show that mobility is about as high, or even higher, as in the highly fluid U.S. labor market. Finally, we describe and examine the wage structure between and within firms and changes therein since 1980, especially with an eye on possible impacts of the trend towards a more decentralized wage determination. The shift towards decentralized wage bargaining has coincided with deregulation and increased product market competition. The evidence is, however, not consistent with stronger competition in product markets eroding firm-specific rents. Hence, the prime suspect is the change in wage setting institutions.

Suggested Citation

  • Tor Eriksson & Niels Westergaard-Nielsen, 2007. "Wage and Labor Mobility in Denmark, 1980-2000," NBER Working Papers 13064, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:13064
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    5. Bolvig, Iben, 2004. "Within- and between-firm mobility in the low-wage labour market," Working Papers 04-11, University of Aarhus, Aarhus School of Business, Department of Economics.
    6. Frederiksen, Anders & Westergård-Nielsen, Niels C., 2002. "Where Did They Go?," IZA Discussion Papers 414, IZA Network @ LISER.
    7. Nabanita Datta Gupta & Donna S. Rothstein, 2005. "The Impact of Worker and Establishment‐level Characteristics on Male–Female Wage Differentials: Evidence from Danish Matched Employee–Employer Data," LABOUR, CEIS, vol. 19(1), pages 1-34, March.
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    Cited by:

    1. Colm McLaughlin, 2007. "The productivity enhancing Impacts of the Minimum Wage: Lessons from Denmark, New Zealand and Ireland," Working Papers wp342, Centre for Business Research, University of Cambridge.
    2. Ria Ivandic & Anne Sophie Lassen, 2023. "Gender gaps from labor market shocks," CEP Discussion Papers dp1944, Centre for Economic Performance, LSE.
    3. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
    4. Luca Paolo Merlino & Pierpaolo Parrotta & Dario Pozzoli, 2012. "Assortative Matching Gender," Working Papers ECARES ECARES 2012-040, ULB -- Universite Libre de Bruxelles.
    5. Ivandic, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," LSE Research Online Documents on Economics 121285, London School of Economics and Political Science, LSE Library.
    6. Luca Paolo Merlino & Pierpaolo Parrotta & Dario Pozzoli, 2018. "Gender Differences in Sorting," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(4), pages 671-709, October.
    7. Frederiksen, Anders & Halliday, Timothy J. & Koch, Alexander K., 2010. "What Do We Work For? An Anatomy of Pre- and Post-Tax Earnings Growth," IZA Discussion Papers 5298, IZA Network @ LISER.
    8. Gu, Grace Weishi & Malik, Samreen & Pozzoli, Dario & Rocha, Vera, 2016. "Trade Induced Skill Upgrading: Lessons from the Danish and Portuguese Experiences," IZA Discussion Papers 10035, IZA Network @ LISER.
    9. Anders Frederiksen & Timothy Halliday & Alexander K. Koch, 2016. "Within- and Cross-Firm Mobility and Earnings Growth," ILR Review, Cornell University, ILR School, vol. 69(2), pages 320-353, March.
    10. Kaiser, Ulrich & Kongsted, Hans Christian & Rønde, Thomas, 2015. "Does the mobility of R&D labor increase innovation?," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 91-105.
    11. Luca Paolo Merlino & Pierpaolo Parrotta & Dario Pozzoli, 2018. "Gender Differences in Sorting," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(4), pages 671-709, October.
    12. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," LSE Research Online Documents on Economics 119948, London School of Economics and Political Science, LSE Library.
    13. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," Labour Economics, Elsevier, vol. 83(C).
    14. Rikke Ibsen & Elisabetta Trevisan & Niels Westergaard-Nielsen, 2008. "Job Mobility and Skill Transferability. Some Evidences from Denmark and a Large Italian Region," Working Papers 2008_40, Department of Economics, University of Venice "Ca' Foscari".

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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