Wage and Labor Mobility in Denmark, 1980–2000

Tor Eriksson and Niels Westergaard-Nielsen

in The Structure of Wages

Published by University of Chicago Press

Published in print February 2009 | ISBN: 9780226470504
Published online February 2013 | e-ISBN: 9780226470511 | DOI:
Wage and Labor Mobility in Denmark, 1980–2000

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This chapter, which describes some key features of the labor market in Denmark, also addresses the important aspect of its functioning and flexibility: the high level of worker mobility. Then, it explores the wage structure between and within firms, and changes therein since 1980. The Danish labor market, which is characterized by both high job mobility and high wage mobility, has an institutional setup that strongly facilitates mobility. The observed increase in overall wage dispersion is predominantly due to increasing wage differentials between firms. Moreover, Denmark has experienced a shift in wage bargaining from a highly centralized system to a considerably more decentralized wage setting. There has been a clear increase in between-firm wage inequality. Although labor turnover rates are high, a considerable portion of workers are in long-term employment relationships.

Keywords: worker mobility; Danish labor market; Denmark; wage structure; firms; job mobility; wage mobility; labor turnover; employment

Chapter.  8265 words.  Illustrated.

Subjects: International Economics

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