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

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Author Info

  • Erixon, Lennart

    ()
    (Dept. of Economics, Stockholm University)

Abstract

A Swedish economic policy was developed by two trade union economists shortly after the Second World War. The Rehn-Meidner model recommends the use of selective employment policy measures, a tight macroeconomic policy and a wage policy of solidarity to combine full employment and equity with price stability and economic growth. Although never consistently applied in Sweden, it is possible to distinguish a golden age for the Rehn-Meidner model from the late 1950s to the early 1970s. In the 1970s and 1980s, Swedish governments abandoned the restrictive macroeconomic means of the Rehn-Meidner programme and decentralised wage bargaining obstructed the wage policy of solidarity. In the 1990s and 2000s a new economic-policy regime could not meet the strong requirement of full employment in the Rehn-Meidner model but it satisfied the model’s priority of selective employment policy within the framework of a restrictive macroeconomic policy.

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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2008:2.

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Length: 76 pages
Date of creation: Feb 2008
Date of revision:
Handle: RePEc:hhs:sunrpe:2008_0002

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
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Web page: http://www.ne.su.se/
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Related research

Keywords: Swedish model; Rehn-Meidner model; third way; labour market policy; wage policy; productivity growth; fiscal policy; unemployment; inflation;

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  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. 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.
  2. Francesco Vona & Luca Zamparelli, 2010. "Centralized Wage Setting and Labor Market Policies: the Nordic Model Case," Working Papers 5/10, Sapienza University of Rome, DISS.
  3. Torben Andersen, 2010. "Why do Scandinavians Work?," CESifo Working Paper Series 3068, CESifo Group Munich.
  4. 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.
  5. 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.

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