Scandinavian Working Papers in Economics

Research Papers in Economics,
Stockholm University, Department of Economics

No 2000:8: Trade, Employment and Wages in Sweden 1975-93

Eva Oscarsson
Additional contact information
Eva Oscarsson: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden

Abstract: This paper investigates the effect of import competition on employment and wages in the Swedish manufacturing sector during 1975-93. Labour is divided into production and non-production workers respectively. The results show that import competition had a significant negative effect on the employment of both labour groups. The effect was larger for non-production workers than for production workers. Non-production worker real wages were not affected at all by import competition, while it had a negative effect on production worker real wages. Technological change had a significant negative effect on employment for both labour groups, and a positive effect on the real wage for non-production workers.

Keywords: Import competition; Employment; Wages; Technology

JEL-codes: J31; O33

20 pages, April 1, 2000

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