
How well does Swedish wage formation work? A reply to Österholm
Abstract
This reply examines whether Swedish wage formation supports a well-functioning labour market. It distinguishes aggregate wage growth from relative wages for low-skilled workers and occupations with labour shortages. The authors argue that coordinated bargaining has helped sustain employment, but that high minimum wages can hinder employment for low-skilled groups, while low relative wages make recruitment difficult in parts of the welfare sector and other shortage areas. They call on the social partners to allow more flexible relative wages.
Calmfors, L., & Skedinger, P. (2026). Hur väl fungerar den svenska lönebildningen? Svar till Österholm. Ekonomisk Debatt, 54(4), 77–84.. Hur väl fungerar den svenska lönebildningen? Svar till Österholm
