Hostname: page-component-5c6d5d7d68-ckgrl Total loading time: 0 Render date: 2024-08-09T14:14:34.607Z Has data issue: false hasContentIssue false
  • English
  • Français

Emerging from crisis: Sweden’s active labour market policy and vulnerable groups

Published online by Cambridge University Press:  01 January 2023

Marcela Kantová Open the ORCID record for Marcela Kantová [Opens in a new window]  and
Markéta Arltová
Marcela Kantová*
Affiliation:
HaskoningDHV Czech Republic, Czech Republic
Markéta Arltová
Affiliation:
University of Economics in Prague, Czech Republic
*
Marcela Kantová, HaskoningDHV Czech Republic, spol. s r.o., Sokolovská 100/94, 18600 Praha 8, Czech Republic. Email: marcela.kantova@rhdhv.com
Get access Rights & Permissions [Opens in a new window]

Abstract

Sweden has adopted an Active Labour Market Policy as a means of transitioning out of the economic crisis created by the 2020 COVID-19 pandemic. The approach is to a significant extent reminiscent of that adopted following the 2008 Global Financial Crisis (GFC). The article examines the effectiveness of active labour market policy in Sweden over the period 2007–2012. By analysing these earlier policy outcomes, the aim is to assess the success of active labour market policy more broadly. The hypothesis that greater labour market flexibility allows the labour market policy to be more efficient is evaluated. With a focus on the labour supply, possible reasons for the reduced efficiency of state interventions are outlined using regression models. Conclusions derived from the models point to the failure of earlier Swedish active labour market policy towards the vulnerable groups of the unemployed, unemployed women and men aged 15–19 years and the long-term unemployed.

Keywords

J08J21J64Active labour market policyflexicuritymatching effectivenessSwedenunemployment
Type
Original Articles
Information
The Economic and Labour Relations Review , Volume 31 , Issue 4 , December 2020 , pp. 543 - 564
Copyright
Copyright © The Author(s) 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Arbetsförmedlingen (2009) Arbetsmarknadens Årsredovisning 2008 []. Stockholm: Arbetsförmedlingen.Google Scholar
Arbetsförmedlingen (2010) Arbetsmarknadens Årsredovisning 2009 []. Stockholm: Arbetsförmedlingen.Google Scholar
Arbetsförmedlingen (2011a) Arbetsförmedlingens Årsredovisning 2010 []. Stockholm: Arbetsförmedlingen.Google Scholar
Arbetsförmedlingen (2011b) Arbetsmarknadsrapport 2011 []. Stockholm: Arbetsförmedlingen.Google Scholar
Arbetsförmedlingen (2012a) Arbetsförmedlingens Årsredovisning 2011 []. Stockholm: Arbetsförmedlingen.Google Scholar
Arbetsförmedlingen (2012b) Arbetsmarknadsrapport 2012 []. Stockholm: Arbetsförmedlingen.Google Scholar
Arbetsförmedlingen (2013) Arbetsförmedlingens Årsredovisning 2012 []. Stockholm: Arbetsförmedlingen.Google Scholar
Arbetsförmedlingen (2014) Arbetsmarknadsrapport 2014 []. Stockholm: Arbetsförmedlingen.Google Scholar
Arbetsförmedlingen (2020) Arbetsförmedlingen’s measures to handle the Coronacrisis [on-line]. Brussels: World Association of Public Employment Services (WAPES). Available at: http://wapes.org/en/news/arbetsformedlingens-measures-handle-coronacrisis (accessed 22 August 2020).Google Scholar
Arbetsmarknadsstyrelsen (2008) Årsredovisning 2007 []. Stockholm: Arbetsmarknadverket.Google Scholar
Björklund, A, Edin, P-A, Holmlund, B, et al. (2006) Arbetsmarknaden []. Stockholm: SNS Förlag.Google Scholar
Bleakley, H, Fuhrer, JC (1997) Shifts in the Beveridge curve, job matching, and labour market dynamics. New England Economic Review. Available at: https://econpapers.repec.org/article/fipfedbne/y_3a1997_3ai_3asep_3ap_3a3-19.htm#:~:text=Shifts%20in%20the%20Beveridge%20Curve%2C%20job%20matching%2C%20and%20labor%20market%20dynamics,-Hoyt%20Bleakley%20(hoytb&text=They%20find%20significant%20increases%20 Google Scholar
Brown, AJG, Koettl, J (2015) Active labor market programs: employment gain or fiscal drain? IZA Journal of Labor Economics 4: 12.CrossRefGoogle Scholar
Calmfors, L, Holmlund, B (2000) Unemployment and economic growth: a partial survey. Swedish Economic Policy Review 7(1): 107–153.Google Scholar
Calmfors, L, Forslund, A, Hemström, M (2001) Does active labour market policy work? Lessons from the Swedish experiences. Swedish Economic Policy Review 8(2): 61–124.Google Scholar
Calmfors, L, Forslund, A, Hemström, M (2002) Vad vet vi om den svenska arbetsmarknadspolitikens sysselsättningseffekter? []. Rapport 2002:8. Uppsala: IFAU – Institute for Labour Market Policy Evaluation.Google Scholar
Census Bureau (2017) X-13ARIMA-SEATS. Washington, DC: Center for Statistical Research and Methodology, U.S. Census Bureau.Google Scholar
CESifo (2005) Net replacement rates: CESifo DICE report. Journal for Institutional Comparisons 3(1): 81–82.Google Scholar
De Beer, P, Schils, T (2010) Introduction: achieving an optimal social mix. In: De Beer, P, Schils, T (eds) The Labour Market Triangle: Employment Protection, Unemployment Compensation and Activation in Europe. Cheltenham: Edward Elgar Publishing, pp. 1–25.Google Scholar
Dickey, DA, Fuller, WA (1979) Distribution of estimators for autoregressive time series with a unit root. Journal of American Statistical Association 74(366): 427–431.Google Scholar
EMCO Working Group on Flexicurity (2006) Flexicurity (Report). Brussels: European Commission.Google Scholar
Engle, RF, Granger, CWJ (1987) Cointegration and error correction representation: estimation and testing. Econometrica 55: 251–276.CrossRefGoogle Scholar
European Commission (2006) The Swedish reform programme for growth and jobs 2006 to 2008. Available at: http://www.ec.europa.eu/social/BlobServlet?docId=6197&langId=en (accessed 22 August 2013).Google Scholar
European Commission (2012) Labour market developments in Europe 2012. European Economy 5 /2012. Available at: https://ec.europa.eu/economy_finance/publications/european_economy/2012/pdf/ee-2012-5_en.pdf Google Scholar
Forslund, A, Fredriksson, P, Vikström, J (2011) What active labor market policy works in a recession? Nordic Economic Policy Review 1: 171–201.Google Scholar
Forslund, A, Froberg, D, Lindqvist, L (2004) The Swedish activity guarantee. OECD social, employment and migration working paper no. 16 , January. Paris: OECD.Google Scholar
Granger, CWJ, Newbold, P (1974) Spurious regressions in econometrics. Journal of Econometrics 2(2): 111–120.CrossRefGoogle Scholar
Hendry, D, Pagan, A, Sargan, J (1984) Dynamic specifications. In: Grilliches, Z, Intrillgator, MD (eds) Handbook of Econometrics, vol. 2. Amsterdam: Elsevier, pp. 1023–1100.CrossRefGoogle Scholar
Heyes, J (2011) Flexicurity, employment protection and the jobs crisis. Work, Employment and Society 25(4): 642–657.CrossRefGoogle Scholar
Keune, M (2008) Flexicurity: a contested concept at the core of the European labour market debate. Intereconomics 43(2): 92–98.Google Scholar
Layard, R, Nickell, S, Jackman, R (1991) Unemployment. New York: Oxford University Press.Google Scholar
Lehwess-Litzmaan, R (2012) What does flexicurity have to gain from the capability-approach? Management Revue 23(2): 119–139.Google Scholar
McDonald-Johnson, K, Monsell, B, Fescina, R, et al. (2006) Seasonal Adjustment Diagnostics: Census Bureau Guideline. Washington, DC: U.S. Census Bureau, U.S. Department of Commerce.Google Scholar
Neumark, D, Troske, K (2011) Addressing the employment situation in the aftermath of the great recession. Journal of Policy Analysis and Management 31(1): 160–168.CrossRefGoogle Scholar
Nickell, S (1997) Unemployment and labour market rigidities: Europe versus North America. Journal of Economic Perspectives 11(3): 55–74.CrossRefGoogle Scholar
Nickell, S, Van Ours, J (2000) The Netherlands and the United Kingdom: A European unemployment miracle? Economic Policy 15(30): 137–180.CrossRefGoogle Scholar
Nordic Council of Ministers (2010) Labour Market Mobility in Nordic Welfare States. Copenhagen: Nordic Council of Ministers.Google Scholar
Nordic Council of Ministers (2017) Top Economists Re-Evaluate the Nordic Model. Copenhagen: The Nordic Council and the Nordic Council of Ministers. Available at: https://www.norden.org/en/search?query=top+economists+re-evaluate (accessed 12 April 2017).Google Scholar
Organisation for Economic Co-operation and Development (OECD) (2004a) Benefits and Wages: OECD Indicators. Paris: OECD.Google Scholar
Organisation for Economic Co-operation and Development (OECD) (2004b) Employment protection regulation and labour market performance. In: OECD (eds) Employment Outlook. Paris: OECD, pp. 61–125.Google Scholar
Organisation for Economic Co-operation and Development (OECD) (2007) OECD Employment Outlook 2007. Paris: OECD.Google Scholar
Rogowski, R (2008) Governance of the European social model: the case of flexicurity. Intereconomics 43(2): 82–91.Google Scholar
Sapir, A, Aghion, P, Bertola, G, et al. (2004) An Agenda for a Growing Europe: Making the EU System Deliver: Report of an Independent High-Level Study Group Established on the Initiative of the President of the European Commission (The Sapir Report). Oxford: Oxford University Press.Google Scholar
Sianesi, B (2008) Differential effects of active labour market programs for the unemployed. Labour Economics 15(3): 370–399.CrossRefGoogle Scholar
Sibbmark, K (2008) Arbetsmarknadspolitisk översikt 2007 []. Rapport 2008:21. Uppsala: IFAU – Institute for Labour Market Policy Evaluation.Google Scholar
Sibbmark, K (2009) Arbetsmarknadspolitisk översikt 2008 []. Rapport 2009:21. Uppsala: IFAU – Institute for Labour Market Policy Evaluation.Google Scholar
Sibbmark, K (2010) Arbetsmarknadspolitisk översikt 2009 []. Rapport 2010:18. Uppsala: IFAU – Institute for Labour Market Policy Evaluation.Google Scholar
Sjöberg, O (2008) Labour market mobility and workers’ skills in a comparative perspective: exploring the role of unemployment insurance benefits. International Journal of Social Welfare 17(1): 74–83.CrossRefGoogle Scholar
Sweden (2008) Regeringens proposition (Government bill) 2007/08:100. Available at: http://www.regeringen.se/sb/d/10169/a/102808 (accessed 6 January 2015).Google Scholar
Sweden (2009) Regeringens proposition (Government bill) 2008/09:100. Available at: http://www.regeringen.se/sb/d/11453/a/124309 (accessed 6 January 2015).Google Scholar
Tvrdoň, M (2008) Institucionální aspekty fungování trhu práce []. Politická Ekonomie 56(5): 621–642.CrossRefGoogle Scholar
Viebrock, E, Clasen, J (2009) Flexicurity and welfare reform: a review. Socio-Economic Review 7(2): 305–331.CrossRefGoogle Scholar
Wilthagen, T, Tros, F (2004) The concept of ‘flexicurity’: a new approach to regulating employment and labour markets. Transfer: European Review of Labour and Research 10(2): 166–186.CrossRefGoogle Scholar