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The Structure of WagesAn International Comparison$
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Edward P. Lazear and Kathryn L. Shaw

Print publication date: 2009

Print ISBN-13: 9780226470504

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226470511.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 19 September 2021

Wage and Labor Mobility in Denmark, 1980–2000

Wage and Labor Mobility in Denmark, 1980–2000

(p.101) 3 Wage and Labor Mobility in Denmark, 1980–2000
The Structure of Wages

Tor Eriksson

Niels Westergaard-Nielsen

University of Chicago Press

This chapter, which describes some key features of the labor market in Denmark, also addresses the important aspect of its functioning and flexibility: the high level of worker mobility. Then, it explores the wage structure between and within firms, and changes therein since 1980. The Danish labor market, which is characterized by both high job mobility and high wage mobility, has an institutional setup that strongly facilitates mobility. The observed increase in overall wage dispersion is predominantly due to increasing wage differentials between firms. Moreover, Denmark has experienced a shift in wage bargaining from a highly centralized system to a considerably more decentralized wage setting. There has been a clear increase in between-firm wage inequality. Although labor turnover rates are high, a considerable portion of workers are in long-term employment relationships.

Keywords:   worker mobility, Danish labor market, Denmark, wage structure, firms, job mobility, wage mobility, labor turnover, employment

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