The Decline of the Swedish Model and the Limits to Active Labour Market Policy
The paper argues that the 1990-93 recession in Sweden offered a natural experiment to test hypotheses about Sweden's success in maintaining low unemployment in the 1980s. The paper identifies a fundamental shift in the macroeconomic policy regime in 1991 as the main cause of the subsequent detioration in employment. That shift was undertaken in part because of an exaggerated belief in the efficacy of active labour market policy (ALMP). By 1991 most of the policy instruments of the Swedish Model had already been undermined and ALMP was left with sole responsibility for maintaining employment. There so also a strong body of research finding modest positive effects on the subsequent employment experience of participants for improved placement services and assistance with job search, but the result for the other components of ALMP, such as training, are at best ambiguous. That suggests that policy in Britain in recent years has been moving in the right direction, with more emphasis on the programmes run by the Employment Service, less emphasising on training and a sceptical approach to the large scale implementation of wage subsidies. The key lesson from the experience of Sweden in the early 1990s is that an inflated view of the efficacy of ALMP can lead to the fatal neglect of other policy instruments.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Aug 1995|
|Contact details of provider:|| Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP|
When requesting a correction, please mention this item's handle: RePEc:cep:cepdps:dp0259. 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: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.