Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Oskar Nordström Skans
Wage dispersion between and within plants: Sweden 1985-2000
(), Per-Anders Edin
() and Bertil Holmlund
Abstract: The paper describes the Swedish wage distribution and how
it correlates with worker mobility and plant-specific factors. It is well
known that wage inequality has increased in Sweden since the mid-1980s.
However, little evidence has so far been available as to whether this
development reflects increased dispersion between plants, between
individuals in the same plant, or both. We use a new linked
employer-employee data set and discover that a trend rise in between-plant
wage inequality account for the entire increase in wage dispersion. This
pattern, which remains when we control for observable individual human
capital characteristics, may reflect increased sorting of workers by skill
levels and/or increased scope for rent sharing in local wage negotiations.
Our discussion suggests that both factors may have become more
Keywords: Wage inequality; labour turnover; (follow links to similar papers)
JEL-Codes: J31; J63; (follow links to similar papers)
58 pages, August 29, 2006
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