TY - JOUR AU - Skans, Oskar Nordström AU - Edin, Per-Anders AU - Holmlund, Bertil TI - Wage dispersion between and within plants: Sweden 1985-2000 JF - National Bureau of Economic Research Working Paper Series VL - No. 13021 PY - 2007 Y2 - April 2007 DO - 10.3386/w13021 UR - http://www.nber.org/papers/w13021 L1 - http://www.nber.org/papers/w13021.pdf N1 - Author contact info: Oskar Nordström Skans Department of Economics, Uppsala University Box 513 75120 Uppsala, Sweden E-Mail: oskar.nordstrom_skans@nek.uu.se Per-Anders Edin Department of Economics Uppsala University Box 513 751 20 Uppsala SWEDEN Tel: 46-18-181097 Fax: 46-18-181478 E-Mail: per-anders.edin@nek.uu.se Bertil Holmlund Uppsala University Department of Economics, Box 513 751 20 Uppsala, SWEDEN E-Mail: bertil.holmlund@nek.uu.se M1 - published as Oskar Nordström Skans, Per-Anders Edin, Bertil Holmlund. "Wage Dispersion Between and Within Plants: Sweden 1985-2000 ," in Edward P. Lazear and Kathryn L. Shaw, editors, "The Structure of Wages: An International Comparison" University of Chicago Press (2008) M3 - presented at "Wage Structure, Raises, and Mobility", January 2, 2007 AB - 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 both factors may have become more important. ER -