Scandinavian Working Papers in Economics

Working Paper Series,
Trade Union Institute for Economic Research

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

Per-Anders Edin, Peter Fredriksson and Per Lundborg
Additional contact information
Per-Anders Edin: Uppsala University, Postal: Department of Economics, Box 513, 751 20 Uppsala, Sweden
Peter Fredriksson: Uppsala University, Postal: Department of Economics, Box 513, SE-751 20 Uppsala, Sweden
Per Lundborg: Trade Union Institute for Economic Research, Postal: FIEF, Wallingatan 38, SE-111 24 Stockholm, Sweden

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

JEL-codes: F14; J23; J31; J62; J63

28 pages, December 18, 2000

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Published as
Per-Anders Edin, 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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