Abstract

The gender-based wage gap in Swedish banks began to increase in 1983 after many years of decline. The growth in the gap between the wages of nonmanagerial women and men employees was particularly high. This article asks, How did this happen? Wage setting, part of the processes of control in capitalist economies, is accomplished through concrete practices under specific historical conditions. The author studied these practices and conditions to understand the increasing wage gap. Through interviews and examination of union and management documents, the author constructs an account of a wage-setting process that, in spite of a strong union and centralized bargaining, allows management to make discretionary wage decisions that favor raises for men over raises for women. Since 1983, competition and deregulation in the banking sector as well as union strategies have created conditions in which an increasing proportion of annual wage increases have been distributed on a discretionary basis. This has led to an increase in the wage gap. The author concludes that policies to raise women's relative wages should pursue general, across-the-board bargaining rather than individualized wage setting.