EconPapers    
Economics at your fingertips  
 

The Structural Crisis in the Swedish Economy: Role of Labor Markets

Ramana Ramaswamy
Additional contact information
Ramana Ramaswamy: International Monetary Fund

IMF Staff Papers, 1994, vol. 41, issue 2, 367-379

Abstract: This paper argues that Sweden's structural problems of slow productivity growth and high wage inflation can be linked in an important way to the institutional features of its labor market, which is characterized by a combination of centralized bargaining and wage equalization. In particular, Sweden's high wage inflation in the 1980s was due to the combined impact of the breakdown of the leading role assigned to the traded goods sector in wage determination and high wage drift. Slow productivity growth is attributed to the inappropriateness of the policy of wage equalization in an environment in which flexible work practices have become increasingly important.

JEL-codes: J30 (search for similar items in EconPapers)
Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.jstor.org/stable/3867513?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:imfstp:v:41:y:1994:i:2:p:367-379

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-19
Handle: RePEc:pal:imfstp:v:41:y:1994:i:2:p:367-379