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The Scandinavian Model – Prospects and Challenges

  • Torben Andersen
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    Scandinavian countries are often portrayed in policy debates as model examples having shown how to square concerns for efficiency and equity. The core principle of the Scandinavian welfare model is an individual entitlement to public sector provisions combined with collective financing via taxes. However, a high employment rate is needed to ensure financial viability of this model. The Scandinavian model faces several challenges which affect the possibilities of maintaining a high employment ratio, namely, demographic changes, a growth dilemma and globalization. This paper discusses how these challenges affect the need and scope for reforms of the Scandinavian welfare model.

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    File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2007/wp-cesifo-2007-01/cesifo1_wp1903.pdf
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    Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1903.

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    Date of creation: 2007
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    Handle: RePEc:ces:ceswps:_1903
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    1. Assar Lindbeck, 2006. "Sustainable social spending," International Tax and Public Finance, Springer, vol. 13(4), pages 303-324, August.
    2. William D. Nordhaus, 2006. "Baumol's Diseases: A Macroeconomic Perspective," NBER Working Papers 12218, National Bureau of Economic Research, Inc.
    3. Baumol, William J. & Batey Blackman, Sue Anne & Wolff, Edward N., 1984. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," Working Papers 84-02, C.V. Starr Center for Applied Economics, New York University.
    4. Charles I. Jones, 2002. "Why Have Health Expenditures as a Share fo GDP Risen So Much?," NBER Working Papers 9325, National Bureau of Economic Research, Inc.
    5. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, March.
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