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Equal Pay for Unequal Work
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1984 (English)Report (Other academic)
Abstract [en]

Swedish labor unions have squeezed wage differentials between heterogeneous labor. This paper explores effects on factor prices, production and employment in the short run, when skilled and unskilled labor is mobile and capital is sector specific, in the medium run, when all factors are mobile, and in the long run, when the ratio of skilled to unskilled labor is determined endogeneously. Contrary to common belief, suich egalitarian wage policies may depress wages of unskilled as well as skilled labor and must raise capital returns in the medium and long run. Demand for unskilled labor will fall over time.

Place, publisher, year, edition, pages
Stockholm: IIES , 1984. , 34 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 292
National Category
URN: urn:nbn:se:su:diva-41312OAI: diva2:329446
Available from: 2010-07-12 Created: 2010-07-12 Last updated: 2010-07-12Bibliographically approved

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Flam, Harry
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