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Changes in the skills distribution, labour market institutions and wage dispersion: A comparative analysis between Germany and Sweden
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2018 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Globalisation and skill-biased technological change have contributed to a decrease in the demand for low-skilled labour in both Sweden and Germany. Furthermore, the supply of low-skilled individuals has increased which has led to tougher competition for low-skilled jobs. The labour market situation for low-skilled workers has since the mid-1990s developed significantly worse in Sweden compared to Germany. Simultaneously, the relative wages for the lowest skilled in Sweden have remained unchanged while they have fallen in Germany. These opposite outcomes can partly be explained by how the labour market institutions have adapted to the changes in supply and demand for skills. Therefore, this paper examines how the German and Swedish labour market institutions have changed since the 1990s and what this implies for low-skilled workers and the wage dispersion. The findings show that the German labour market institutions have transformed considerably which have contributed to a more flexible wage structure and higher wage dispersion. The Swedish labour market institutions have not changed as extensively as the German institutions. The wage structure is rigid and the wage dispersion is still low. The weaker employment outcomes for low-skilled workers in Sweden compared to Germany may be associated with the lack of downward flexibility in the Swedish wage structure.

Place, publisher, year, edition, pages
2018.
Keywords [en]
labour market institutions, skills distribution, industrial relations, minimum wage.
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-355611OAI: oai:DiVA.org:uu-355611DiVA, id: diva2:1229924
Supervisors
Examiners
Available from: 2018-07-02 Created: 2018-07-02 Last updated: 2018-07-02Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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More styles
Language
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  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
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  • text
  • asciidoc
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