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- Enflo, Kerstin, et al.
(författare)
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The Role of Migration in Regional Wage Convergence: Evidence from Sweden 1860–1940
- 2014
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Ingår i: Explorations in Economic History. - : Elsevier BV. - 0014-4983. ; 52, s. 93-110
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Tidskriftsartikel (refereegranskat)abstract
- Sweden experienced a decline in inter-county real wage differentials for agricultural workers between 1860 and 1940, historical evidence of early labour market integration well before widespread unionization in agriculture occurred. By means of dynamic panel data analysis, this paper examines whether internal and external migration caused real wage beta convergence across Swedish counties. To account for statistical problems such as endogeneity of migration, time-invariant county characteristics and autocorrelation in the regression model, we adjust our estimates using fixed effects, instrumental variables and GMM. The preferred model shows that both internal and external migration contributed to wage convergence before the First World War and internal migration mainly during the interwar years. The agglomeration effects of urbanization were not sufficiently pervasive to offset the labour supply effects of internal and external migration.
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- Prado, Svante, 1974, et al.
(författare)
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Labour and the ‘law of one price’ : regional wage convergence of farm workers in Sweden, 1757–1980
- 2021
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Ingår i: Scandinavian Economic History Review. - : Informa UK Limited. - 1750-2837 .- 0358-5522. ; 69:1, s. 41-62
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Tidskriftsartikel (refereegranskat)abstract
- Economic theory predicts that differences in wages for workers with similar skills will decline as labour mobility increase. This prediction is reminiscent of the ‘law of one price’, the notion that markets, if unfettered, eliminates price differentials of similar commodities across space. But can we really apply the economic logic of the commodity market to the labour market, governed as it is by institutions and politics as well as market forces? In this paper, we have examined the spread in farm workers’ wages across Swedish counties in 1757–1980. Besides nominal wages, the paper also offers cost of living indices by county. The paper enquires into sigma convergence and beta convergence. Long-run convergence, by both measures, was massive; the coefficient of variation, for instance, declined from about 28 per cent in the mid-eighteenth century to 4 per cent in 1980. Most of the compression, though, occurred in brief episodes rather than continuously. Markets, through labour mobility and trade, and institutions, through collective actions and labour laws, took turns in pushing towards regional convergence. The ‘law of one price’, we conclude, was not singlehandedly responsible for the elimination of regional wage differentials.
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