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The Rehn-Meidner Model in Sweden: Its Rise, Challenges and Survival

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  • Lennart Erixon

Abstract

The Rehn-Meidner model recommends active labor-market policies, tight macroeconomic policies and solidarity wage policies to combine price stability, growth, full employment and equity. The golden age for the model in Sweden began in the late 1950s and ended in the early 1970s. The following postwar period was characterized by obvious deviations from the Rehn-Meidner model but also by the survival of parts of the model. The rise and partial fall of the model in Sweden is explained by changes in political institutions, wage bargaining systems, trade union power, economic policy makers and economic thinking and by experiences of economic policy in the past. However, there is weak evidence that the departure from the Rehn-Meidner model is ultimately explained by globalization and new technologies.

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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Journal of Economic Issues.

Volume (Year): 44 (2010)
Issue (Month): 3 (September)
Pages: 677-715

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Handle: RePEc:mes:jeciss:v:44:y:2010:i:3:p:677-715

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Related research

Keywords: labor-market policy; Rehn-Meidner model; stabilization policy; Swedish model; wage policy of solidarity;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Riesgo e Incertidumbre: Buscando Robustez en la Política Fiscal (III)
    by Jesús Fernández-Villaverde in Nada Es Gratis on 2010-03-09 17:13:47
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Cited by:
  1. Luca Zamparelli & Francesco Vona, 2010. "Centralized Wage Setting and Labor Market Policies: the Nordic Model Case," Working Papers CELEG 1005, Dipartimento di Economia e Finanza, LUISS Guido Carli.
  2. Torben M. Andersen, 2011. "Social policies and activation in the Scandinavian welfare model: the case of Denmark," Economics Working Papers 2011-10, School of Economics and Management, University of Aarhus.
  3. Erixon, Lennart, 2011. "Under the influence of traumatic events, new ideas, economic experts and the ICT revolution - the economic policy and macroeconomic performance of Sweden in the 1990s and 2000s," Research Papers in Economics 2011:25, Stockholm University, Department of Economics.
  4. Francesco Vona & Luca Zamparelli, 2014. "Centralized Wage Setting and Active Labor Market Policies in Frictional Labor Markets: The Nordic Case," Eastern Economic Journal, Palgrave Macmillan, vol. 40(3), pages 349-364, June.
  5. Torben Andersen, 2010. "Why do Scandinavians Work?," CESifo Working Paper Series 3068, CESifo Group Munich.

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