Wage Dispersion between and within Plants

Oskar Nordström Skans, Per-Anders Edin and Bertil Holmlund

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 Dispersion between and within Plants

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This chapter outlines the Swedish labor market institutions, the turbulent macroeconomic events of the 1990s, and the evolution of labor mobility and fixed-term contracts as a background to the later analysis of wages and mobility. It also reports detailed descriptive evidence of wages, wage changes, and mobility at the plant level in the Swedish private corporate sector for the years 1986, 1990, 1995, and 2000. The evolution of the wage structure is then covered. The data show that although the rate of real wage changes increasingly varies between plants, the variation of wage changes has remained stable within plants. The wage dispersion has increased quite consistently for the corporate sector and for the private corporate sector, where the dispersion has been relatively stable. Wages and productivity at the plant level are strongly positively correlated, both in levels and changes.

Keywords: labor mobility; wage structure; wage dispersion; labor market institutions; plant level; Swedish corporate sector

Chapter.  14716 words.  Illustrated.

Subjects: International Economics

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