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OECD Economic Surveys: Sweden 2012

image of OECD Economic Surveys: Sweden 2012

OECD's 2012 Economic Survey of Sweden examines recent economic developments, policy and prospects before taking a more detailed look at labour and social policies as well as housing and financial markets.

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Labour market and social policies to foster more inclusive growth

Sweden is a very egalitarian country but inequalities have risen and some groups are poorly integrated into the labour market. To make growth more inclusive, the gap between the cost of labour and productivity for some groups will have 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 women’s employment opportunities.

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