This paper uses a large matched employer-employee data set for Sweden to study the relationship between firm age and individual wages, systematically addressing a variety of possible explanations for observing a firm-age wage effect. Results show considerable heterogeneity across years, along...

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...

We examine the effect of firm profits on wages for individual workers while focusing on the empirical complications associated with estimating the extent of rent-sharing. Controlling for worker and firm fixed-effects and using several instruments to deal with the endogeneity of profits, we...

We test whether predictions of the Aghion and Howitt (2004) model are supported by firm level data. In particular, we analyze if there is an inverted U-shaped relation between competition and R&D. Results show that the inverted U-shaped relation is supported by the Herfindahl index but not by...

This study examines the inter-industry wage structure in Swedish manufacturing by using matched employer-employee data for the period 1996 to 2000. First, we use detailed individual and job characteristics to estimate industry-specific and time-varying wage premiums. Second, we investigate the...

We analyze the theoretical effects on growth and welfare in transition economies of emigration of educated and uneducated labor, of higher emigration probability, etc. Using a Grossman-Helpman growth model, we show that the prospects of labor market integration with the EU raises the expected...

We examine how tax avoidance in the form of trade in well-functioning asset markets affects the empirical study of labor supply. We discuss the implications for tax policy analysis, and we show that a failure to account for avoidance responses may lead to huge errors when predicting how tax...

The paper investigates the shift in demand towards more skilled labour in Swedish manufacturing during the last two decades. Two competing hypotheses to explain this shift are examined: skilled-biased technical change and increased international competition.

The rate of change in the share of skilled labor has increased steadily over the past 35 years in Swedish manufacturing. A closer inspection of the period after 1970 indicates that while relative supply changes of skilled labor seem to have been the main driving force behind the growing skill...

Based on a large matched employer-employee data set for Sweden, this study analyses gender differences in rent sharing. Results indicate a general pattern of significantly smaller remuneration from firm profits for women. Gender differences in rent sharing, however, explain less than two percent...