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FIEF - Trade Union Institute for Economic Research Working Paper Series, FIEF - Trade Union Institute for Economic Research

No 163:
Trade, Earnings, and Mobility - Swedish Evidence

Per-Anders Edin, Peter Fredriksson and Per Lundborg

Abstract: Using a large longitudinal data set, we study the effects of increased trade on earnings and mobility in the Swedish labor market in the late 1980s and early 1990s. Earnings respond significantly to changes in industry sales, whether generated by domestic market forces or international trade: Swedish exports (imports) raise (lower) annual earnings, but changes in trade affect earnings just as any other shift in market conditions. In general, the wage effects are small; the prime response to changes in the product market appears to be variations in employment. We also examine whether trade has differential effects across skill groups. However, we do not find systematic differences in the effects of trade across the earnings distribution.

Keywords: International Trade; Earnings; Mobility; (follow links to similar papers)

JEL-Codes: F14; J23; J31; J62; J63; (follow links to similar papers)

28 pages, December 18, 2000

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This paper is published as:
Edin, Per-Anders, Peter Fredriksson and Per Lundborg, (2004), 'The Effect of Trade on Earnings - Evidence from Swedish Micro Data', Oxford Economic Papers, Vol. 56, No. 2, pages 231-241



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