Structural change, the returns to skills, and inequality

Project title

Structural change, the returns to skills, and inequality

Project summary

Inequality of income, wealth and opportunity is the topic of policy debates in all developed countries. Some have argued that the increase in inequality observed since 1980 is the underlying cause of the political polarization in Europe and the United States.

Almost all OECD countries – Sweden included Sweden – have witnessed an increase in labor market inequality since the beginning of the 1980s. The rise in inequality varies across countries, in a way that can plausibly be linked to difference in the design of institutions.

This project examines how structural change affects the returns to skills and inequality, respectively. Using unique data and new analyses, we document these relationships in ways that have not been possible hitherto.

Project duration

2020-2023

Main applicant

Peter Fredriksson

Co-applicants

Georg Graetz and Björn Öckert

Funder

Handelsbanken

Amount received

SEK 2,000,000

Last modified: 2021-03-09