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This investigation explores the long-run relationship between the wage share in the non-construction private sector and government efforts to create jobs in public services and construction of infrastructure and houses, in Sweden in 1900 to 2016. In the present article, it is argued that the creation of employment with generous wages by the Swedish government has increased the bargaining power of workers outside of these sectors, thus raising the wage share, up to about 1980. Correspondingly,doi:10.1080/0023656x.2020.1731732 fatcat:3mb7tuv5cjhclik2ztjk46tei4