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The Swedish Model: Relevant for Other European Countries?
Author(s) -
Delsen Lei,
Veen Tom
Publication year - 1992
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.1992.tb00765.x
Subject(s) - unemployment , economics , labour market flexibility , flexibility (engineering) , labour economics , deregulation , context (archaeology) , order (exchange) , labour supply , orthodoxy , european union , market economy , macroeconomics , international economics , history , paleontology , management , archaeology , finance , biology
By the late 1970s, supply‐side theory had become something of a new economic orthodoxy. From the supply‐side perspective, labour market inflexibility explains mass unemployment. In this context the presumably greater flexibility of the labour market in the USA was seen as an explanation of its superior employment record relative to European economies. Unlike most European countries, Sweden, which is highly regulated, does reasonably well in employment terms. The authors conclude that the Swedish model has proved its value with regard to labour market policy, especially with regard to the duration of unemployment, and that the Swedish model still contains relevant characteristics for other European countries. Active labour market policy is a way out of the unemployment trap. The active labour market policy may serve as an alternative for deregulation in order to augment the flexibility of the labour market.