Using a matched employer-employee dataset that covers a large proportion of the Swedish private sector,
including all industries except finance, I study the evolution of the labor market in Sweden during the
1970ís and 1980ís. Wage structures within and between firms change over this time due to changes in
macroeconomic conditions and changes in wage bargaining norms. By the end of the period, wages are
less egalitarian. Also, turnover is notably higher, which probably reflects increasing decentralization
of bargaining and other changes in the labor market.