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The role of migration in regional wage convergence: Evidence from Sweden 1860–1940

Author

Listed:
  • Enflo, Kerstin
  • Lundh, Christer
  • Prado, Svante

Abstract

Sweden experienced a decline in inter-county real wage differentials for agricultural workers between 1860 and 1940, historical evidence of early labor market integration well before widespread unionization in agriculture occurred. By means of dynamic panel data analysis, this paper examines whether internal and external migrations caused real wage beta convergence across Swedish counties. To account for statistical problems such as endogeneity of migration, time-invariant county characteristics and autocorrelation in the regression model, we adjust our estimates using fixed effects, instrumental variables and GMM. The preferred model shows that both internal and external migrations contributed to wage convergence before the First World War and internal migration mainly during the interwar years. The agglomeration effects of urbanization were not sufficiently pervasive to offset the labor supply effects of internal and external migrations.

Suggested Citation

  • Enflo, Kerstin & Lundh, Christer & Prado, Svante, 2014. "The role of migration in regional wage convergence: Evidence from Sweden 1860–1940," Explorations in Economic History, Elsevier, vol. 52(C), pages 93-110.
    • Handle: RePEc:eee:exehis:v:52:y:2014:i:c:p:93-110
    DOI: 10.1016/j.eeh.2013.12.001
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    Citations

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    Cited by:

    1. Lazuka, Volha, 2017. "Infant health and later-life labour market outcomes : Evidence from the introduction of sulfa antibiotics in Sweden," Lund Papers in Economic History 154, Lund University, Department of Economic History.
    2. Giuranno Michele G. & Biswas Rongili, 2019. "Internal Migration and Public Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(4), pages 1-16, October.
    3. Kerstin Enflo & Anna Missiaia, 2020. "Between Malthus and the industrial take‐off: regional inequality in Sweden, 1571–1850," Economic History Review, Economic History Society, vol. 73(2), pages 431-454, May.
    4. Lazuka, Volha, 2017. "The lasting health and income effects of public health formation in Sweden," Lund Papers in Economic History 153, Lund University, Department of Economic History.
    5. Cristian Incaltarau & Gabriela Carmen Pascariu & Adelaide Duarte & Peter Nijkamp, 2021. "Migration, regional growth and convergence: a spatial econometric study on Romania," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(3), pages 497-532, June.
    6. Nina Boberg-Fazlić & Markus Lampe & Paul Sharp, 2021. "The Sleeping Giant Who Left for America: The Determinants and Impact of Danish Emigration During the Age of Mass Migration," Working Papers 0213, European Historical Economics Society (EHES).
    7. Byron Lew & Bruce Cater, 2018. "Farm mechanization on an otherwise ‘featureless’ plain: tractors on the Northern Great Plains and immigration policy of the 1920s," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(2), pages 181-218, May.
    8. Enflo, Kerstin, 2014. "Finland’s regional GDPs 1880-2010: estimates, sources and interpretations," Lund Papers in Economic History 135, Lund University, Department of Economic History.
    9. Das, Prabir & Saha, Jay & Chouhan, Pradip, 2020. "Effects of labor out-migration on socio-economic set-up at the place of origin: Evidence from rural India," Children and Youth Services Review, Elsevier, vol. 119(C).
    10. Mounir Karadja & Erik Prawitz, 2019. "Exit, Voice, and Political Change: Evidence from Swedish Mass Migration to the United States," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1864-1925.
    11. Berger, Thor & Enflo, Kerstin, 2017. "Locomotives of local growth: The short- and long-term impact of railroads in Sweden," Journal of Urban Economics, Elsevier, vol. 98(C), pages 124-138.
    12. Neagu Olimpia, 2020. "Real Wage Convergence in Romania: Empirical Evidence Based on Club Converging," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(3), pages 108-117, September.
    13. David Andersson & Mounir Karadja & Erik Prawitz, 2022. "Mass Migration and Technological Change," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 1859-1896.
    14. Paredes, Dusan & Loveridge, Scott, 2018. "Rural electric cooperatives and economic development," Energy Policy, Elsevier, vol. 117(C), pages 49-57.

    More about this item

    Keywords

    Migration; Wage convergence; Labor market integration; Instrumental variables; GMM;
    All these keywords.

    JEL classification:

    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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