Wage Dispersion and Job Turnover: Evidence from Sweden

Fredrik Heyman

No 181, Working Paper Series from Trade Union Institute for Economic Research

Abstract: This paper uses Swedish establishment-level panel data to test the hypothesis of a positive relation between the degree of wage compression and job reallocation as proposed by Bertola and Rogerson (1997). The effect of wage dispersion on job turnover is negative and significant in the manufacturing sector. The wage com-pression effect is stronger on job destruction than on job creation, suggesting that wages are more downward than upward rigid. Further results include (i) a strong positive relationship between the industry share of temporary employees and job turnover and (ii) a negative relationship between the amount of working-time flexibility and job reallocation.

Keywords: Job creation and job destruction; Wage dispersion; Temporary employment contracts; Panel data (search for similar items in EconPapers)
JEL-codes: J21 J31 J63 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2002-11-11
New Economics Papers: this item is included in nep-ltv
Note: This paper is Chapter 2 of my 2002 Stockholm School of Economics Ph.D. thesis.
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:fiefwp:0181

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