Change search
ReferencesLink to record
Permanent link

Direct link
Benefits conditional on work and the Nordic model
Stockholm University, Faculty of Social Sciences, Department of Economics.
Number of Authors: 2
2015 (English)In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 127, 115-126 p.Article in journal (Refereed) Published
Abstract [en]

Welfare benefits in the Nordic countries are often tied to employment. We argue that this is one of the factors behind the success of the Nordic model, where a comprehensive welfare state is associated with high employment. In a general equilibrium setting, the underlining mechanism works through wage moderation and job creation. The benefits make it more important to hold a job, thus lower wages will be accepted, and more jobs created. Moreover, we show that the incentive to acquire higher education improves, further boosting employment in the long run. These positive effects help in counteracting the negative impact of taxation. Through numerical simulations, we show how this mechanism can contribute to explain the better labor market performance and more equitable income distribution of Nordic countries compared to Continental European ones.

Place, publisher, year, edition, pages
2015. Vol. 127, 115-126 p.
Keyword [en]
Nordic model, In-work benefits, Wage adjustment, Unemployment, Education, Skill formation, Earnings
National Category
Economics and Business
URN: urn:nbn:se:su:diva-119308DOI: 10.1016/j.jpubeco.2014.05.010ISI: 000357904800010OAI: diva2:844081
Available from: 2015-08-03 Created: 2015-08-03 Last updated: 2015-08-03Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Kolm, Ann-Sofie
By organisation
Department of Economics
In the same journal
Journal of Public Economics
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 26 hits
ReferencesLink to record
Permanent link

Direct link