Abstract

This section describes the main features of the Swedish labor market. The main trends in the labor market are first outlined, focusing on developments during the 1990s. This is followed by an evaluation of those labor market programs that distinguish the Swedish labor market from its main European partners. The impact of Sweden’s wage bargaining system on competitiveness and long-run productivity is then analyzed. The section concludes with a discussion of the effect of labor market regulations on the flexibility of the labor market.

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