NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Oskar Nordstrom Skans

IFAU
P.O. Box 513
SE-751 20 Uppsala
Sweden
Tel: +46 18 471 7079
Fax: +46 18 471 7071

E-Mail: oskar.nordstrom_skans@ifau.uu.se

NBER Working Papers and Publications

January 2009Wage Dispersion Between and Within Plants: Sweden 1985-2000
with Per-Anders Edin, Bertil Holmlund
in The Structure of Wages: An International Comparison, Edward P. Lazear and Kathryn L. Shaw, editors
April 2007Wage dispersion between and within plants: Sweden 1985-2000
with Per-Anders Edin, Bertil Holmlund: w13021
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 bo...

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