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A study of job polarization in Sweden from an urban-rural perspective

Author

Listed:
  • Martin Nordin

    (AgriFood Economics Centre, Lund university)

  • Cecilia Hammarlund

    (AgriFood Economics Centre, Lund university)

  • Andreas Bergh

    (Lund University)

Abstract

This study is an explorative examination of changes in employment, revenue, and firm structure for low, mid, and high-skill firms in urban and rural areas in Sweden from 2007 to 2019, using skill groups based on education levels. For employment in Sweden in general, we find evidence of job upgrading. In the city of Stockholm we also document job polarization in the sense that employment in both low-skill and high-skill industries increased. We discuss various reasons why job polarization might be an urban phenomenon. We also document some consolidation towards larger firms in the low-skill sector and note that the revenue share of high-skill industries was constant during the period. Even though Swedish labour market institutions differ substantially from those of other OECD countries, the patterns of job polarization are strikingly similar.

Suggested Citation

  • Martin Nordin & Cecilia Hammarlund & Andreas Bergh, 2025. "A study of job polarization in Sweden from an urban-rural perspective," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 59(1), pages 1-9, December.
    • Handle: RePEc:spr:jlabrs:v:59:y:2025:i:1:d:10.1186_s12651-025-00397-y
    DOI: 10.1186/s12651-025-00397-y
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    More about this item

    Keywords

    Job polarization; Rural; Urban; Profits; Wage share; Capital taxes;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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