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Wage structure trajectories and regional divergence : A sequence analysis of swedish local labour markets

Erlström, Andreas LU orcid (2026) In Geoforum 176. p.1-20
Abstract
The last decades have seen rising economic polarisation, often portrayed as a dichotomy between unequal yet successful metropolitan regions and ‘left behind’, poorer and predominantly smaller regions. However, there is also an argument for a more complex picture in which regions transition between economic growth and decline. This paper explores the long-term evolution of regional wage structures in Sweden over 30 years, employing geographical sequence analysis to trace the various regional pathways. I contextualise these regional path developments by situating them within the broader deindustrialisation of regional economies across phases of economic development. The findings reveal a wider range of developments as Swedish regions... (More)
The last decades have seen rising economic polarisation, often portrayed as a dichotomy between unequal yet successful metropolitan regions and ‘left behind’, poorer and predominantly smaller regions. However, there is also an argument for a more complex picture in which regions transition between economic growth and decline. This paper explores the long-term evolution of regional wage structures in Sweden over 30 years, employing geographical sequence analysis to trace the various regional pathways. I contextualise these regional path developments by situating them within the broader deindustrialisation of regional economies across phases of economic development. The findings reveal a wider range of developments as Swedish regions underwent a turbulent period in the 1990s, linked to the growth of the knowledge economy. While this created an initial divergence between Downgrading and Upgrading regions, only a few, predominantly sparsely populated, regions have experienced continuous decline, and most regional economies have transitioned towards relative growth in middle-income jobs. The paper then extends the analysis, identifying four types of trajectories in regional development that provide insight into how various responses to deindustrialisation shape wage structures beyond the urban–rural divide. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Labour Market Polarisation, Economic Inequality, Regional Trajectories, Sequence Analysis, Regional Development
in
Geoforum
volume
176
article number
104763
pages
20 pages
publisher
Elsevier
external identifiers
  • scopus:105044944282
ISSN
0016-7185
DOI
10.1016/j.geoforum.2026.104763
project
Evolving Geographies of Economic Inequality: Continuity and Change in Wage Structures Across Sweden, 1990–2018
language
English
LU publication?
yes
id
a32462a8-8012-4749-b6f8-3aa186908e2b
date added to LUP
2026-08-06 11:20:10
date last changed
2026-08-07 15:04:58
@article{a32462a8-8012-4749-b6f8-3aa186908e2b,
  abstract     = {{The last decades have seen rising economic polarisation, often portrayed as a dichotomy between unequal yet successful metropolitan regions and ‘left behind’, poorer and predominantly smaller regions. However, there is also an argument for a more complex picture in which regions transition between economic growth and decline. This paper explores the long-term evolution of regional wage structures in Sweden over 30 years, employing geographical sequence analysis to trace the various regional pathways. I contextualise these regional path developments by situating them within the broader deindustrialisation of regional economies across phases of economic development. The findings reveal a wider range of developments as Swedish regions underwent a turbulent period in the 1990s, linked to the growth of the knowledge economy. While this created an initial divergence between Downgrading and Upgrading regions, only a few, predominantly sparsely populated, regions have experienced continuous decline, and most regional economies have transitioned towards relative growth in middle-income jobs. The paper then extends the analysis, identifying four types of trajectories in regional development that provide insight into how various responses to deindustrialisation shape wage structures beyond the urban–rural divide.}},
  author       = {{Erlström, Andreas}},
  issn         = {{0016-7185}},
  keywords     = {{Labour Market Polarisation; Economic Inequality; Regional Trajectories; Sequence Analysis; Regional Development}},
  language     = {{eng}},
  month        = {{07}},
  pages        = {{1--20}},
  publisher    = {{Elsevier}},
  series       = {{Geoforum}},
  title        = {{Wage structure trajectories and regional divergence : A sequence analysis of swedish local labour markets}},
  url          = {{http://dx.doi.org/10.1016/j.geoforum.2026.104763}},
  doi          = {{10.1016/j.geoforum.2026.104763}},
  volume       = {{176}},
  year         = {{2026}},
}