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Keeping regional inequality in check in Sweden

Author

Listed:
  • Christophe André
  • Jinwoan Beom
  • Mathilde Pak
  • Axel Purwin

Abstract

Regional inequality is low in Sweden compared to most other OECD countries, but has been rising over the past decades, fuelling discontent in parts of the country, whose inhabitants feel left behind. The younger population is increasingly concentrated in the largest cities, which also enjoy the highest productivity growth. Demographic trends exacerbate the difficulty in providing equal public services across the country. Healthy public finances are allowing the government to increase its support to municipalities and regions to adjust to demographic developments and local operating conditions. Beyond this effort, keeping regional inequality in check will require upgrading the sub-national government fiscal framework, enhancing public service efficiency, especially through digitalisation, and promoting regional convergence further, especially by strengthening the role of universities in regional knowledge and innovation networks.

Suggested Citation

  • Christophe André & Jinwoan Beom & Mathilde Pak & Axel Purwin, 2021. "Keeping regional inequality in check in Sweden," OECD Economics Department Working Papers 1689, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1689-en
    DOI: 10.1787/e4bec28f-en
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    More about this item

    Keywords

    Regional economic activity; Regional government analysis; Regional inequality; Regional Studies; State and local budget and expenditures; State and local taxation; subsidies; and revenue; Sweden;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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