The Welfare State in Transition: Reforming the Swedish Model

Once heralded in the 1950s and 1960s as a model welfare state, Sweden is now in transition and in trouble since its economic plunge in the early 1990s.

This volume presents ten essays that examine Sweden's economic problems from a U.S. perspective. Exploring such diverse topics as income equalization and efficiency, welfare and tax policy, wage determination and unemployment, and international competitiveness and growth, they consider how Sweden's welfare state succeeded in eliminating poverty and became a role model for other countries. They then reflect on Sweden's past economic problems, such as the increase in government spending and the fall in industrial productivity, warning of problems to come. Finally they review the consequences of the collapse of Sweden's economy in the early 1990s, exploring the implications of its efforts to reform its welfare state and reestablish a healthy economy.

This volume will be of interest to policymakers and analysts, social scientists, and economists interested in welfare states.

Robert H. Topel is the Isidore Brown and Gladys J. Brown Professor in Urban and Labor Economics in the Graduate School of Business at the University of Chicago. He is coeditor of The Welfare State in Transition and Labor Market Data and Measurement, both published by the University of Chicago Press.

Birgitta Swedenborg is research director of the Center for Business and Policy Studies in Sweden.