Work or welfare - a dilemma in the declining Swedish welfare state (original) (raw)
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The burden of the welfare state may be analysed from an economic as well as a more normative perspective. This paper attempts to do both things. By the use of the case of Sweden the expansion and the costs of the welfare state is described, partly in international comparison, and explained, largely in terms of unintended consequences. Special attention is given to the effects of taxes. Next, the concept of dignity is explicated and used to evaluate the Swedish welfare state. The overall conclusion is that the burden of the welfare state is high indeed, both in economic terms and from the perspective of human dignity. Consequently, if we want to promote economic efficiency, growth and dignity the size of the state should be radically decreased.
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We acknowledge the helpful comments of Birgitta Swedenborg, the other members of the Center for Business and Policy Studies/ National Bureau of Economic Research group, and conference participants-especially Nils Gottfries (our discussant) and Bertil Holmlund. We also thank Albin Kainelainen, Kjell Salvanes, Per Skedinger, and Roope Uusitalo for help with the data. We are responsible for the errors. Some of the work on this chapter was done while Fredriksson was at the Institute for International Economic Studies, Stockholm University. 1. Even at its peak during the 1950s, union coverage in the United States never exceeded 35 percent. Private-sector unionism has been in steady decline since. Union coverage has increased only in the public sector, where roughly 36 percent of workers now belong to unions. Government intervention in labor markets has increased over time, mainly as a result of workplace regulations and the erosion of the employment at will doctrine that has historically characterized much of U.S. employment relations. Public employment as a fraction of total employment remains low by international standards.
Is the Swedish Welfare State A Free Lunch?
Econ Journal Watch, 2006
WITH HIGH TAXES, HIGH PUBLIC EXPENDITURES, AND A SOCIAL policy many would call progressive, Sweden is a special country for social scientists. Peter H. Lindert makes special use of Sweden in his book Growing Public, first published by Cambridge University Press in 2004 and translated into Swedish in 2005. 1 The main part of the book aims to describe and explain the expansion of western welfare states. 2 Lindert uses Sweden to explain why the welfare state appears to be a free lunch, what he calls the "Free-Lunch Puzzle." I argue that Lindert misrepresents Sweden when it comes to work incentives for the poor, employment of women, and employment of the elderly, and that he does not pay sufficient attention to the many reforms undertaken in Sweden since the late 1980s.
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