Is the Swedish Welfare State A Free Lunch?
In his book _Growing Public_ (Cambridge University Press), Peter H. Lindert argues that the welfare state is a â€œfree lunchâ€, i.e. has no negative effect on growth, and he uses Sweden to explain this finding, which he calls the free lunch puzzle. In this comment, I claim 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. I conclude by suggesting that the surprising resilience of the Swedish welfare state can be explained by increasing economic freedom.
Volume (Year): 3 (2006)
Issue (Month): 2 (May)
|Contact details of provider:|| Postal: |
Phone: (703) 993-1151
Web page: http://econjwatch.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fölster, Stefan & Henrekson, Magnus, 1997.
"Growth and the Public Sector: A Critique of the Critics,"
Working Paper Series
492, Research Institute of Industrial Economics, revised 10 Jun 1998.
- Folster, Stefan & Henrekson, Magnus, 1999. "Growth and the public sector: a critique of the critics," European Journal of Political Economy, Elsevier, vol. 15(2), pages 337-358, June.
- Persson, T. & Tabellini, G., 1993.
"Is Inequality Harmful for Growth,"
537, Stockholm - International Economic Studies.
- Agell, Jonas & Ohlsson, Henry & Thoursie, Peter Skogman, 2006.
"Growth effects of government expenditure and taxation in rich countries: A comment,"
European Economic Review,
Elsevier, vol. 50(1), pages 211-218, January.
- Agell, Jonas & Ohlsson, Henry & Skogman Thoursie, Peter, 2003. "Growth Effects of Government Expenditure and Taxation in Rich Countries: A Comment," Research Papers in Economics 2003:14, Stockholm University, Department of Economics.
- Agell, J. & Lindh, T. & Ohlsson, H., 1999.
"Growth and the Public Sector: a Reply,"
1999:1, Uppsala - Working Paper Series.
- Andreas Bergh, 2004. "The Universal Welfare State: Theory and the Case of Sweden," Political Studies, Political Studies Association, vol. 52, pages 745-766, December.
- Peter H. Lindert, 2003.
"Why the Welfare State Looks Like a Free Lunch,"
NBER Working Papers
9869, National Bureau of Economic Research, Inc.
- Giuseppe Carone & Herwig Immervoll & Dominique Paturot & Aino Salomäki, 2004. "Indicators of Unemployment and Low-Wage Traps: Marginal Effective Tax Rates on Employment Incomes," OECD Social, Employment and Migration Working Papers 18, OECD Publishing.
- Assar Lindbeck, 1997. "The Swedish Experiment," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1273-1319, September.
- Davidsson, Per & Henrekson, Magnus, 2000.
"Determinants of the Prevalence of Start-ups and High-Growth Firms,"
SSE/EFI Working Paper Series in Economics and Finance
381, Stockholm School of Economics, revised 26 May 2002.
- Davidsson, Per & Henrekson, Magnus, 2002. " Determinants of the Prevalence of Start-Ups and High-Growth Firms," Small Business Economics, Springer, vol. 19(2), pages 81-104, September.
- Henrekson, Magnus & Dreber, Anna, 2004. "Female Career Success: Institutions, Path Dependence and Psychology," SSE/EFI Working Paper Series in Economics and Finance 574, Stockholm School of Economics, revised 27 Jan 2005.
- Folster, Stefan & Henrekson, Magnus, 2006. "Growth effects of government expenditure and taxation in rich countries: A reply," European Economic Review, Elsevier, vol. 50(1), pages 219-221, January.
- Peter Gordon & Lanlan Wang, 2004. "Does Economic Performance Correlate with Big Government?," Econ Journal Watch, Econ Journal Watch, vol. 1(2), pages 192-221, August.
When requesting a correction, please mention this item's handle: RePEc:ejw:journl:v:3:y:2006:i:2:p:210-235. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jason Briggeman)The email address of this maintainer does not seem to be valid anymore. Please ask Jason Briggeman to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.