Abstract
The Swedish approach to labor market adjustment has its intellectual origins in very influential work from the early 1950s by trade union economists, notably Gösta Rehn and Rudolf Meidner. A basic theme of the so called Rehn—Meidner model was that adjustment of relative wages are inefficient and/or undesirable as a means to accomplish sectoral labor reallocations. According to Rehn and Meidner, labor mobility induced by relative wage changes is a slow process, and it may also have undesirable distributional consequences. The process of structural change should therefore be stimulated by deliberate actions on part of the confederation of trade unions and the government. This policy involved a “solidaristic” wage policy as well as active labor market policies.
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Björklund, A., Holmlund, B. (1989). Job Mobility and Subsequent Wages in Sweden. In: Van Dijk, J., Folmer, H., Herzog, H.W., Schlottmann, A.M. (eds) Migration and Labor Market Adjustment. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7846-2_9
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DOI: https://doi.org/10.1007/978-94-015-7846-2_9
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