The nordic model: myths and realities

Keywords: nordic model, welfare state, labor market, education

Abstract

The Nordic model is well known for its successful results in societies that adopt it. Denmark, Finland, Iceland, Norway, and Sweden top a wide range of indices and indicators worldwide. However, several aspects of these welfare states are little known, so some common myths exist. In this context, we identified the main characteristics of the Nordic model and pointed out the most relevant facts within each nation. Likewise, we compared the Nordic countries with Latin American ones. Then, we considered the main criticisms of the model in four areas: economy, labor market, education, and culture. Finally, we presented a general assessment of the advantages and disadvantages of the Nordic model.

References

Andersen, T. M., Holmström, B., Honkapohja, S., Korkman, S., Söderström, H. T., & Vartiainen, J. (2007). The Nordic model. Embracing globalization and sharing risks. Taloustieto Oy. https://www.etla.fi/wp-content/uploads/2012/09/B232.pdf

Antikainen, A. (2006). In search of the Nordic model in education. Scandinavian Journal of Educational Research, 50(3), 229-243. https://doi.org/10.1080/00313830600743258

Arancón, F. (2014). El modelo de bienestar nórdico. El Orden Mundial, 7 de febrero. https://elordenmundial.com/el-modelo-de-bienestar-nordico/

Asen, E. (2020). Insights into the tax systems of Scandinavian countries. Tax Foundation, 24 de febrero. https://taxfoundation.org/scandinavian-countries-taxes-2021/

Atkinson, A. B., & Søgaard, J. E. (2013). The long-run history of income inequality in Denmark: top incomes from 1870 to 2010. University of Copenhagen. (Working paper 2013 01). https://doi.org/10.1111/sjoe.12143

Banco Mundial (2021). Indicadores del desarrollo mundial. Banco Mundial. https://datatopics.worldbank.org/world-development-indicators/

Banco Mundial (2021). Indicadores del PBI per cápita, PPA. Banco Mundial. https://datos.bancomundial.org/indicator/NY.GDP.PCAP.PP.CD

Barría, C. (2020). La innovadora ley en Finlandia que iguala el permiso parental para madres y padres (y qué países de América Latina tienen más licencia por paternidad). BBC News, 7 de febrero. https://www.bbc.com/mundo/noticias-51379996

Barría, C. (2021). Por qué hay una inflación tan baja en América Latina y qué dice de la economía de la región. BBC News, 11 de enero. https://www.bbc.com/mundo/noticias-55538796

Barth, E., Moene, K. O., & Willumsen, F. (2014). The Scandinavian model: an interpretation. Journal of Public Economics, 127, 17-29. https://lanekenworthy.files.wordpress.com/2018/01/reading-barthetal2014.pdf

Bjuggren, C. M., & Johansson, D. (2009). Privat och offentlig sysselsättning i Sverige 1950-2005. Ekonomisk Debatt, 37(1), 41-53. https://www.nationalekonomi.se/sites/default/files/legacy/37-1-cmbdj.pdf

Brandolini, A., Smeeding, T. M., & Sierminska, E. (2008). Comparing wealth distribution across rich countries: first results from the Luxembourg wealth study. Bank of Italy. (Research paper 47). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1162176

Bruining, D. (2021). La economía nórdica explicada: las diferencias entre capitalismo “compasivo” y socialismo. https://fundacionbases.org/la-economia-nordica-explicada-las-diferencias-entre-capitalismo-compasivo-y-socialismo/

Causa, O., Hermansen, M., Ruiz, N., Klein, C., & Smidova, Z. (2016). Inequality in Denmark through the looking glass. OECD Economics Department. (Working paper 1341). https://doi.org/10.1787/5jln041vm6tg-en

Chinchilla, N., Jiménez, E., & Grau, M. (2018). Índice I-WIL 2018 (IESE - Women in Leadership). IESE Business School University of Navarra. https://www.mashumano.org/images/Areas/Empresas/AFEstudioIndiceIWilBAJA_1.pdf

Cohen, A., & Razin, A. (2008). The skill composition of immigrants and the generosity of the welfare state: free vs. policy-controlled migration. National Bureau of Economic Research. (Working paper 14459). https://cep.lse.ac.uk/seminarpapers/06-05-09-AR.pdf

Comisión Europea. (2013). EMN inform. Attracting highly qualified and qualified third-country nationals to the EU. https://www.emn.at/wp-content/uploads/2014/02/EMN-Inform-2013_Highly-Qualified-and-Qualified-Immigration.pdf

Costante, L. B. (2005). De qué hablamos cuando hablamos del estado de bienestar. Lecciones y Ensayos, (81), 133-167. http://www.derecho.uba.ar/publicaciones/lye/revistas/81/de-que-hablamos-cuando-hablamos-del-estado-de-bienestar.pdf

Dahl, G. B., Kostøl, A. R., & Mogstad, M. (2014). Family welfare cultures. The Quarterly Journal of Economics, 129(4), 1711-1752. https://www.ssb.no/en/forskning/discussion-papers/_attachment/183506

Eurostat (2021). European Statistical. Eurostat. https://ec.europa.eu/eurostat

Foro Económico Mundial. (2019). The Global Competitiveness Report 2019. http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf

Foro Económico Mundial. (2020). The Global Competitiveness Report 2020. http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2020.pdf

Greve, B. (2007). What characterise the Nordic welfare state model. Journal of Social Sciences, 3(2), 43-51. https://www.academia.edu/671692/What_Characterise_the_Nordic_Welfare_State_Model

Iacono, R. (2018). The Nordic model of economic development and welfare: recent developments and future prospects. Intereconomics, 53(4), 185-190. https://doi.org/10.1007/s10272-018-0747-2

Klette, K., & Ødegaard, M. (2016). Instructional activities and discourse features in science classrooms: teachers talking and students listening or…? En K. Klette, O. K. Bergem & A. Roe (Eds.), Teaching and learning in lower secondary schools in the era of PISA and TIMSS (pp. 17-31). Springer. https://doi.org/10.1007/978-3-319-17302-3_2

Kliksberg, B. (2017). El informe Kliksberg iv: las economías nórdicas [Video]. YouTube. https://www.youtube.com/watch?v=qkk8pMz6htA

Lindbeck, A. (1995). Hazardous welfare-state dynamics. The American Economic Review, 85(2), 9-15. http://www.jstor.org/stable/2117883

Management Solutions (2020). Informe de coyuntura macroeconómica: países nórdicos. https://www.managementsolutions.com/es/publicaciones-y-eventos/informes-sectoriales/informe-de-coyuntura-macroeconomica/paises-nordicos

Midttun, A., Witoszek, N., Joly, C., Karlsson-Vinkhuyzen, S., Olsen, P. I., Olsson, L., Sigurjonssón, P. O., Toje, A., Trägardh, L., & Østergård, U. (2011). The Nordic model: is it sustainable and exportable? International Journal of Foresight and Innovation Policy, 1-27. https://www.academia.edu/47442232/The_Nordic_Model_is_it_sustainable_and_exportable

Modig, A., & Boberg, K. (2002). Är det OK att sjukskriva sig fast man inte är sjuk? Temo, Rapport T22785. https://docplayer.se/17327094-Ar-det-ok-att-sjukskriva-sig-fast-man-inte-ar-sjuk.html

Morgan Stanley. (2015). Sustainable economics: mind the inequality gap. https://observatorio-lisboa.eapn.pt/ficheiro/Morgan-Stanley_Inequality-Gap.pdf

Ohanian, L., Raffo, A., & Rogerson, R. (2008). Long-term changes in labor supply and taxes: evidence from OECD countries, 1956–2004. Journal of Monetary Economics, 55(8), 1353–1362. https://eml.berkeley.edu/~saez/course/Ohanianetal(2008).pdf

Organización Internacional del Trabajo. (2016). Guía sobre políticas en materia de salario mínimo. https://www.ilo.org/global/docs/WCMS_542028/lang--es/index.htm

Organización Internacional del Trabajo. (2021). ILOSTAT. Organización Internacional del Trabajo. https://ilostat.ilo.org/es/

Organización para la Cooperación y Desarrollo Económicos. (2017). OECD Economic Surveys: Sweden 2017. OECD Publishing. https://www.oecd.org/economy/surveys/Sweden-2017-OECD-economic-survey-overview.pdf

Pampillón, R. (2008). El modelo nórdico. Revista de Economía Mundial (18), 155-165. https://www.redalyc.org/pdf/866/86601813.pdf

Programa de las Naciones Unidas para el Desarrollo. (2019). Informe sobre Desarrollo Humano 2019. Más allá del ingreso, más allá de los promedios, más allá del presente: desigualdades del desarrollo humano en el siglo xxi. http://hdr.undp.org/sites/default/files/hdr_2019_overview_-_spanish.pdf

Rallo, J. R. (2014). Suecia: ¿El fracaso de la educación privada? https://juandemariana.org/ijm-actualidad/articulos-en-prensa/suecia-el-fracaso-de-la-educacion-privada/

Roine, J. & Waldenström, D. (2008). The evolution of top incomes in an egalitarian society: Sweden, 1903-2004. Journal of Public Economics, 92(1-2), 366–387. https://doi.org/10.1016/j.jpubeco.2007.06.012

Rubenson, K. (2006). The Nordic model of lifelong learning. Compare: a journal of comparative and international education, 36(3), 327-341. https://doi.org/10.1080/03057920600872472

Ryner, J. (2007). The Nordic model: does it exist? Can it survive? New Political Economy, 12(1), 61-70. https://doi.org/10.1080/13563460601068644

Sahlberg, P. (2014). A non-competitive education for a competitive economy. En A. Schleicher & F. Benavides (Eds.), Lessons from PISA for Korea (pp. 169-188). OECD Publishing. https://www.oecd-ilibrary.org/docserver/9789264190672-9-en.pdf?expires=1666645404&id=id&accname=guest&checksum=D2E4D22413172D6F805E509D724B015B

Sahlberg, P. (2015). Finnish lessons 2.0: what can the world learn from educational change in Finland? Teachers College Press. https://www.pedocs.de/volltexte/2015/11098/pdf/CEPSJ_2011_3_Franko_Rezension_Sahlberg_Finnish_lessons_what_can.pdf

Sahlgren, G. H. (2015). Real Finnish lessons: the true story of an educational superpower. Centre for Policy Studies. https://cps.org.uk/wp-content/uploads/2021/07/150410115444-RealFinnishLessonsFULLDRAFTCOVER.pdf

Sahlström, F., Tanner, M., & Valasmo, V. (2019). Connected youth, connected classrooms. Smartphone use and student and teacher participation during plenary teaching. Learning, Culture and Social Interaction, 21, 311-331. https://doi.org/10.1016/j.lcsi.2019.03.008

Sanandaji, N. (2016). El poco excepcional modelo escandinavo: cultura, mercado y el fracaso de la tercera vía. Fundación para el Progreso. https://fppchile.org/wp-content/uploads/2016/03/El-poco-excepcional-modelo-escandinavo.pdf

Sanandaji, T., & Wallace, B. (2011). Fiscal illusion and fiscal obfuscation: tax perception in Sweden. Independent Review, 16(2), 237-246. https://www.independent.org/pdf/tir/tir_16_02_5_sanandaji.pdf

Simola, H., Kauko, J., Varjo, J., Kalalahti, M., & Sahlström, F. (2017). Dynamics in education politics: understanding and explaining the Finnish case. Routledge. https://doi.org/10.4324/9780203068793

Skattebetalarnas, F. (2009). Lägre skatter – större jämlikhet. https://resources.mynewsdesk.com/image/upload/fl_attachment/n8sofulkbycdq6b6o8ws

Trabandt, M. ,& Uhlig, H. (2010). How far are we from the slippery slope? The Laffer curve revisited. European Central Bank. (Working paper 1174). https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1174.pdf

Transparencia Internacional. (2021). Corruption Perceptions Index 2020. https://images.transparencycdn.org/images/CPI2020_Report_EN_0802-WEB-1_2021-02-08-103053.pdf

Türkdoğru G. (2018). The Nordic utopia? Applicability of the Nordic model in other countries. [Master’s thesis]. Tallinn University of Technology.

Published
2022-10-25
How to Cite
Camacho, K., Lau, S., Llanos, M. T., & Pozo, X. (2022). The nordic model: myths and realities. Desafíos: Economía Y Empresa, 2(002), 36-45. https://doi.org/10.26439/ddee2022.n002.5728
Section
Artículos