OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Labour Market and Social Policies to Foster More Inclusive Growth in Sweden
Sweden is a very egalitarian country but inequalities have risen and some groups are poorly integrated
into the labour market. For growth to become more inclusive, the gap between the cost of labour and
productivity for some groups needs to be reduced, transitions from education to work should be facilitated,
incentives to take a job ought to be strengthened and the non-employed need to be protected against the
risk of falling into unemployment or inactivity traps. This calls for lowering minimum wages relative to the
average wage for groups at risk of becoming unemployed, improving vocational education and training,
and extending the coverage of the unemployment insurance while strengthening obligations for the
unemployed. To address labour market duality risks, the gap in job protection between temporary and
permanent contracts needs to be reduced. Women’s employment is high but the gender wage gap could be
narrowed further by enhancing their employment opportunities.
Keywords: gender equality, vocational education, labour costs, labour market dualism, minimum wage, public employment services, inclusive growth, employment protection legislation, vocational training, inequality, unemployment insurance, Sweden
JEL:
J16: Labor and Demographic Economics / Demographic Economics / Economics of Gender; Non-labor Discrimination;
I3: Health, Education, and Welfare / Welfare, Well-Being, and Poverty;
I28: Health, Education, and Welfare / Education and Research Institutions / Education: Government Policy;
J51: Labor and Demographic Economics / Labor-Management Relations, Trade Unions, and Collective Bargaining / Trade Unions: Objectives, Structure, and Effects;
I14: Health, Education, and Welfare / Health / Health and Inequality;
J3: Labor and Demographic Economics / Wages, Compensation, and Labor Costs;
J65: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Unemployment Insurance; Severance Pay; Plant Closings;
J08: Labor and Demographic Economics / General / Labor Economics Policies
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