This paper is based on individual-level wage data made available by the former Swedish Employers’ Federation (SAF). We are grateful to Ari Hietasalo, Svenskt Näringsliv and Åke Kempe, Svenska Medlingsinstitutet for their extensive and exceptionally expert cooperation in preparing these data for analysis. We thank Robert Frank, Guillermina Jasso, Edward Lazear, Paul Milgrom, Paul Oyer, Dan Quint, Woody Powell, Katherine Shaw, Gary Solon, Steve Tadelis, Michael Waldman, Lise Vesterlund, Yoram Weiss, and participants of seminars at Colgate, Cornell, University of Michigan, NYU, Stanford GSB workshop, SUNY-Albany, SCANCORE seminar at Stanford University, and 2006 AEA meeting for helpful comments and suggestions. We also thank Minjung Park for excellent research assistance. All remaining errors are ours.