The Swedish unemployment experience

Lars Ljungqvist, Thomas Sargent

    Research output: Contribution to journalArticle

    Abstract

    Since the 1960s, Sweden has sustained a remarkably low unemployment rate while the average duration of unemployment spells has been increasing over time. This pattern is reproduced in an equilibrium search model incorporating progressive income taxes, generous unemployment compensation, and a program for preventing unemployed workers from abusing the system. Our analysis raises concerns about how well the Swedish system is equipped to handle the current situation of high unemployment.

    Original languageEnglish (US)
    Pages (from-to)1043-1070
    Number of pages28
    JournalEuropean Economic Review
    Volume39
    Issue number5
    DOIs
    StatePublished - 1995

    Fingerprint

    Unemployment
    Duration of unemployment
    Unemployment rate
    Income tax
    Sweden
    Unemployment compensation
    Workers

    Keywords

    • Progressive income taxation
    • Search model
    • Sweden
    • Unemployment
    • Unemployment compensation
    • Welfare state

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Finance

    Cite this

    The Swedish unemployment experience. / Ljungqvist, Lars; Sargent, Thomas.

    In: European Economic Review, Vol. 39, No. 5, 1995, p. 1043-1070.

    Research output: Contribution to journalArticle

    Ljungqvist, L & Sargent, T 1995, 'The Swedish unemployment experience', European Economic Review, vol. 39, no. 5, pp. 1043-1070. https://doi.org/10.1016/0014-2921(94)00103-7
    Ljungqvist, Lars ; Sargent, Thomas. / The Swedish unemployment experience. In: European Economic Review. 1995 ; Vol. 39, No. 5. pp. 1043-1070.
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