[[{“value”:”Our analysis suggests that income equality in the Nordics is primarily driven by a significant compression of hourly wages, reducing the returns to labor market skills and education. This appears to be achieved through a wage bargaining system characterized by strong coordination both within and across industries. This finding contrasts with other commonly cited explanations
The post Income inequality in the Nordics appeared first on Marginal REVOLUTION.”}]]
Our analysis suggests that income equality in the Nordics is primarily driven by a significant compression of hourly wages, reducing the returns to labor market skills and education. This appears to be achieved through a wage bargaining system characterized by strong coordination both within and across industries. This finding contrasts with other commonly cited explanations for Nordic income equality, such as redistribution through the tax-transfer system, public spending on goods that complement employment, and public policies aimed at equalizing skills and human capital distribution.
That is from a new NBER working paper by Magne Mogstad, Kjell G. Salvanes, and Gaute Torsvik.
The post Income inequality in the Nordics appeared first on Marginal REVOLUTION.
Economics, Law, Uncategorized
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