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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.
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Limiting Long-Term Unemployment and Non-Participation in Sweden
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- Niels-Jakob Harbo Hansen1
- Author Affiliations
- 1: OECD, France
- 09 Feb 2011
- Bibliographic information
After the onset of the crisis, unemployment in Sweden increased markedly, though much less than expected and than during the early 1990s, even as participation in the labour market held up well. The challenge going forward is to ensure that high unemployment does not become entrenched or leads to withdrawals from the labour force. The government has taken measures to mitigate this risk, particularly in the areas of job-search incentives and enrolment in education. Nevertheless, additional reforms are needed to ensure a sustained job-rich expansion. Such reforms should focus on increasing the flexibility of the labour market and strengthening job-search incentives further. This Working Paper relates to the 2011 OECD Economic Survey of Sweden (www.oecd.org/eco/surveys/Sweden).
- public employment services, employment protection legislation, Sweden, labour market dualism, minimum wage, labour costs
- JEL Classification:
- H20: Public Economics / Taxation, Subsidies, and Revenue / General
- J08: Labor and Demographic Economics / General / Labor Economics Policies
- J30: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / General
- J60: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / General
- K31: Law and Economics / Other Substantive Areas of Law / Labor Law