The extended english summary of the Labour Market Policy Council’s third report – The Duality of the Swedish Labour Market (Tudelningarna på arbetsmarknaden) – is now available. Download the extended summary here.
The report analyses the different dualities on the Swedish Labour Market:
– Non-tradable sectors can for structural reasons be expected to develop more strongly than tradable sectors. The pay bargaining norm, according to which the so called cost mark set by the tradable sector is to be followed by all other sectors may need to be modified in order to handle this situation.
– there is an overrisk of being in fixed-term employment among immigrants and low skilled. This is potentially a result of low wage dispersion. However, the analysis indicates that fixed-term employment can act as a springboard to permanent contracts.
– The gap in labour market attachment between natives and foreign born is shown to be larger than the traditional measures – employment and unemployment rates – reveal. This is due to a higher incidence of fixed-term, part-time and subsidized employment in the latter group.