Has wage development been affected by changes in the composition of the group of employees?

In recent years, wage development has been weak in relation to the economic situation. Something that could affect wage development is if the composition of the group of employees changes. Above all, two major changes have taken place in the composition since 2006: the proportion of people born abroad and the proportion of employees with post-secondary education have increased by a relatively great extent. Has wage development been affected by these changes? This is investigated by Caroline Flodberg of the Riksbank in this Economic Commentary. The analysis shows that the changes overall have had little effect on the aggregate development of wages.


By Caroline Flodberg who works at the Monetary Policy Department of the Riksbank.The opinions expressed in Economic Commentaries are those of the authors and are not to be seen as the Riksbank's view.

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Updated 31/01/2018