Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/81280 
Authors: 
Year of Publication: 
2007
Series/Report no.: 
IFN Working Paper No. 700
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
Minimum wages in Sweden are collectively agreed and differ by industry. Within agreements, the rates are also highly differentiated. Minimum wages are higher in Sweden than in any of the countries with statutory rates considered in this study. This is line with the view that minimum wages are higher than otherwise when unions are involved in minimum wage setting. The reported results for Sweden do no support the suggestion that adverse employment effects are modest in systems with collectively agreed rates. This runs counter to the hypothesis that unions and employers have a good sense of what constitutes a relevant market wage for unskilled workers and use this information to set minimum wages at appropriate levels.
Subjects: 
Minimum Wages
Collective Bargaining
JEL: 
J31
J51
J52
Document Type: 
Working Paper

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