The paper presents an empirical analysis of employment determination in the Swedish wood industry. The conventional labor demand model is tested against the alternative hypothesis that both wages and employment are subject to bargaining. The labor demand model is not supported by the data....

Labour-market polarization is characterized by increased employment in occupations at the top but also at the bottom of the skills and wage distributions, followed by a relative decline in ‘middling’ occupations. This paper documents a polarization trend also in the Nordic labour markets and...