Income Equality in Nordic Countries: Myths, Facts, and Lessons
12 days ago
- #Income Inequality
- #Nordic Model
- #Wage Bargaining
- Nordic countries are often cited as combining low income inequality with prosperity and growth.
- Income equality in the Nordics is primarily driven by wage compression, reducing returns to labor market skills and education.
- Strong coordination in wage bargaining systems plays a key role in achieving this wage compression.
- Common explanations like tax redistribution, public spending, and equal skills policies are less significant than wage bargaining.
- The article challenges myths about Nordic income equality and highlights unresolved questions for other economies.