Conventional thinking about the 1938 Basic Agreement at Saltsjöbaden between organized labor and capital in Sweden holds that it was one of the consequences of a shift in the balance of power between workers and employers to the latter's disadvantage. But detailed archival evidence and analysis...

In a comment to Karadja & Prawitz (2019), henceforth KP, Per Pettersson-Lidbom (2020), henceforth P-L, argues that the main results in KP are severely biased. He argues that KP's results are biased due to non-classical measurement error in emigration and due to confounders related to the...