Economics, Econometrics and Finance
4 years ago

Wage compression in Sweden widens gender earnings gap over time.

Swimming with the tide : solidarity wage policy and the gender earnings gap
Per‐Anders Edin, Katarina Richardson

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The study looked at how changes in wage structures in Sweden from 1968 to 1991 affected the gender wage gap. They found that while industry wage differences worked against women, changes in human capital and skills helped reduce the gap. Wage compression was important in the early years, but by 1981, other factors like discrimination and skill gaps played a bigger role in narrowing the gap. However, between 1981 and 1991, the gender wage gap slightly increased due to changes in wage differences between industries.