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The Swedish Model

Yonatan Reshef
School of Business
University of Alberta
Edmonton, Alberta

BASIC PRINCIPLES

FULL EMPLOYMENT/LOW INFLATION

A MARKET ECONOMY COMBINED WITH SOCIAL WELFARE POLICY

VOLUNTARISM

CLOSE COLLABORATION BETWEEN LABOR AND CAPITAL

THE MEIDNER-REHN MODEL (1950; ENDORSED BY LO IN 1955)

ACTIVE LABOR MARKET POLICY

Labor demand policies (relief work)
Labor supply policies (training, mobility assistance)
Matching policies (job placement, aptitude testing, occupational rehabilitation, counseling)
Expanding the public sector

SOLIDARISTIC WAGE POLICY

Equal pay for work in the same jobs across all industries; plus reasonable differentials for different jobs within each industry
1952 - the first SW agreement in the private sectors
1960 - the first SW agreement in the public sector



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