Evidence of regional wage disparities in national contexts has been presented in a number of studies. Such regional wage variations have also been found among Swedish regions. Given that these wage differences exist the question is whether they are becoming smaller or larger over time. That is, can we observe convergence or divergence? The purpose of the present paper is therefore to assess if wages are converging or diverging over time in the Swedish context. It can be shown that regional average wages depend on different kinds of economies of agglomeration and the abundance of human capital as these factors raise productivity. Regional average wages-levels are also dependent on the industry structure and internal economies of scale. The employment level can be expected to influence wages through competition in the labour market. Thus, the question we pose in this paper is whether these factors also influence wages in a dynamic setting. Using a decomposition method, similar to shift-share, we separate regional wage disparities into an industrial composition and a productivity component. Also, this allows us to calculate changes over time in these two different wage components. Given the results derived in this paper we can conclude that regional wages are converging. However, the convergence of the wages and the two wage components is influenced by the variables mentioned above. The most robust result we find is that converge is dependent on the regional market size, we interpret this as evidence of the presence of dynamic economies of agglomeration.