A service of the

Content

Volume 53, July/August 2018, Number 4 · pp. 185-190

Forum

The Nordic Model of Economic Development and Welfare: Recent Developments and Future Prospects

Roberto Iacono

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.

Note

This Intereconomics article is available for free at this page after an embargo period of two years. Reading it before August 2020 is possible via SpringerLink or in the next library.