Volume 53, July/August 2018, Number 4 · pp. 185-190
The Nordic Model of Economic Development and Welfare: Recent Developments and Future Prospects
This research provides an overview of the recent developments in the functioning of the Nordic model of economic development and welfare. In order to provide a tractable conceptual framework, the paper starts by introducing the key mechanisms of the Nordic economies, as framed in the most recent economic and political economy literature. The three distinct but interrelated features of the Nordic model are a high degree of compression of wage differentials, a dynamic process of creative destruction and innovation, and a high level of public welfare spending. This framework is then used to interpret recent developments and future prospects, mostly related to the implications of population ageing and automation for the future sustainability of public spending in the Nordic economies.
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