10 SwedenPWC

10 SwedenPWC - 10 Post War Compromise - Sweden 1 I....

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10 Post War Compromise - Sweden 1 I. Sweden's economic performance in the Golden Age II. General Reasons for Sweden's relatively good in economic performance A. Technological catch up "Advantages of economic backwardness" should have worked against Sweden. As one of the most advanced countries, it had to invent new technology B. Union strength and structure: Very strong and very centralized unions, employer organizations. 1. Economic interest group strength and structure in Sweden a. SAF - the Swedish Employers' Federation b. LO - central organization (e.g. like AFL-CIO) of the unions of manual workers - c. TCO - central organization of the unions of non-manual workers. 72% of non- manuals organized, most in TCO. Also centralized d. SACO-SR - union of employees with higher education 2. Result of strong, centralized economic interest groups = wage restraint and low strike rates, if strike everyone would go out and country shuts down Why? No collective action problem. If LO demands bigger increases than productivity growth, then (1) inflation will result which will eat up wage gains and
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This note was uploaded on 03/23/2009 for the course POLI 239 taught by Professor Stephens during the Spring '07 term at UNC.

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10 SwedenPWC - 10 Post War Compromise - Sweden 1 I....

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