Working Paper Series, Department of Economics, Uppsala University
No 2002:20:
Earnings Dynamics and Inequality during Macroeconomic Turbulence: Sweden 1991-1999
Magnus Gustavsson ()
Abstract: Using a rich longitudinal database, I study the dynamics
behind changes in the distribution of annual earnings in Sweden 1991 to
1999. The analysis indicates a systematic increase in persistent earnings
differentials during the 1990s; workers with low relative earnings in the
beginning of the decade generally have lower relative earnings in the end.
The evolution of transitory earnings fluctuations differs between age
groups and matters the most for changes in earnings dispersion among
younger workers. To shed some light on the role of wages behind the
findings for earnings, wage dynamics is also studied. The results indicate
that increased persistent wage inequality is one source behind the increase
in persistent earnings inequality.
Keywords: Earnings dynamics; Earnings inequality; Wage structure; (follow links to similar papers)
JEL-Codes: C23; D31; J31; (follow links to similar papers)
41 pages, December 5, 2002
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- This paper is published as:
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Gustavsson, Magnus, (2007), 'The 1990s Rise in Swedish Earnings Inequality - Persistent or Transitory?', Applied Economics, Vol. 39, No. 1, pages 25-30
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