The Swedish Model in Turbulent Times: Decline or Renaissance

Abstract

The main objective of this paper is to analyze the major transformations of the Swedish model. The changes during the 1990s toward a more restrictive and anti-inflationary macroeconomic policy, the reorientation of active labor market policies toward supply- oriented measures, and the structural reforms undertaken in the social protection systems suggest a revival and renaissance of the traditional Swedish model. The Swedish welfare state remains clearly universal and inclusive in nature and still enjoys a high level of public support. In our view, these developments reinforce the coherence of the Swedish model and the robustness of its social cohesion.