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Incomes and Labor Market Policies in Sweden, 1945-70
In the period immediately after World War II Sweden relied on incomes policy measures, including direct control of prices, but did not adopt adequately restrictive demand management policies. This strategy did not succeed in reconciling the policy objectives of price stability, full employment, and economic growth. To achieve this end in an optimal manner, the mix of economic policy was deliberately shifted during the 1950s to active monetary and fiscal policies and has been extended since the late 1950s to active labor market policies. Originally designed to assist demand management policies, labor market policies have subsequently become an instrument of structural policy, used independently of cyclical conditions, and an especially important element of the Swedish Government's efforts to reconcile price stability, rapid growth, and full employment. However, in the 1950s and 1960s the Government did not attempt to interfere with the wage bargaining process, mainly because of opposition by labor and management. The unions have aimed to obtain uniform average contractual wage increases regardless of the level of productivity in industrial firms or branches. Combined with more or less efficient demand management policies and international competition (limiting the rise in international prices in most postwar years), both the union policy of wage solidarity and the active labor market policy of the Government were instrumental in promoting the desired restructuring of the Swedish economy. This restructuring successfully enhanced the efficiency of Sweden's export sector, although the accelerated shutdowns of import-competing firms in the 1960s contributed to an increase in Sweden's import propensity. The "new" policy mix has been more successful in the 1950s and 1960s in preventing recessions than in combating inflationary tendencies, partly because of the continued determination of the Government to sustain full employment and a high degree of social welfare. In addition, it has been difficult to contain the upward pressure on prices in conditions of full employment because of structural factors that are beyond the control of demand management. Such factors arise from the fact that sectors exposed to international competition and with relatively high productivity growth have served as wage leaders which passed on uniform wage increases to the "sheltered" sector far in excess of the latter's productivity gains. The main obstacles to the adoption of an effective incomes policy by the Government have been the wide productivity differences between economic sectors and the lack of control over wage drift by the labor market organizations.
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| SP2101 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Washington, D.C.: International monetary fund 1974 |
|---|---|
| Edisi | Vol. 21, No. 1, Mar., 1974 |
| Subjek | Government Sweden Incomes policy Labor market policies Management policies |
| ISBN/ISSN | 0020-8027 |
| Klasifikasi | NONE |
| Deskripsi Fisik | 26 p. |
| Info Detail Spesifik | Staff Papers (International Monetary Fund) |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |