Abstract
Characteristics, similarities and differences of the Nordic welfare states are developed based upon an analysis of a number of input, output and outcome measures. It is demonstrated that familiarity between the countries has to be established by outcome measures like the Gini coefficient and poverty ratios both mirroring aspects of the income distribution subsequent to taxation and transfer payments. It is argued that the Nordic countries share the basic value of equality, may be even ‘equal dignity in hut and palace’. Irrespective of different choices with regard to instruments to achieve equality, the underlying ethos of the Nordic welfare states is the same. The chapter is closed by discussing a number of challenges facing the Nordic welfare states.
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Notes
- 1.
Seedorff Pedersen (1951). The poem was printed in a private edition in 1946. In 1985 the poem inspired Finnish artist Kyösti Varis to draw a logo symbolising Nordic cooperation.
- 2.
I am most grateful to the poet and translator John Irons for the translation.
- 3.
Castle (1993).
- 4.
“Civil law family” as a concept is discussed in Chap. “Nordic Legal Mind”.
- 5.
These are the prerequisites for relying on an implicit, unwritten social contract.
- 6.
Debates on the difference between ‘public’ and ‘private’, so crucial in many other countries, have from olden days been of minor importance in the Nordic countries.
- 7.
Universality is a contested concept. In this chapter it simply means that everyone is entitled to the same services and that basic services are largely provided free. Genuine universality is found in particular in provision of services in health and education.
- 8.
The Nordic countries obviously satisfy the Sandmo criteria for being developed welfare states. Individuals and families are guaranteed a minimum income irrespective of the market value of their endowments; at least part of individuals’ loss of income due to social contingencies is offset; a basic level of services (health care and education) is provided free of charge to all citizens. But the criteria are met in such a manner that inequality and poverty are reduced to a greater extent than in most other countries. For the Sandmo criteria, see Sandmo (1991).
- 9.
Many Social Democratic-oriented researchers argue that the ‘Nordic model’ is a Social Democratic model. This view, however, is overly simplistic.
- 10.
Ólafsson (1999), p 75.
- 11.
Christiansen and Petersen (2001).
- 12.
- 13.
- 14.
- 15.
- 16.
Esping-Andersen (1990).
- 17.
Kettunen (2006).
- 18.
Flora (1983), p 337.
- 19.
Even though the Danish 1891 Act was a law on public support for the deserving old outside the law on poverty, it did represent introduction of the basic features of long-term benefits in the country: Universality, tax-financing and benefits related to current earning from other sources. It was basically different from the German 1889 Act, which actually served as a negative foil for Danish thinking on social policy. Denmark was marked by strong anti-German sentiments due to defeat in the 1864 war and the loss of Schleswig. It is important also to note that ‘the Nordic model’ was strongly dependent upon the international economy of the day. In fact early Danish social security was inter alia a response to globalisation of the economy. Petersen (1985).
- 20.
As an example Kettunen points to the very late passage of the Sickness Insurance Act Sairausvakuutuslaki 364/1963 in Finland, adopted as late as 1963. However, the topic had been on the agenda since the 1880s, and Ólafsson presents a number of examples from Iceland, see Kettunen (2001) and Ólafsson (1999).
- 21.
Nordisk Socialstatistisk Komité (1998).
- 22.
- 23.
- 24.
Government at a Glance 2013—© OECD 2013, http://www.oecdilibrary.org/docserver/download/4213201ec032.pdf?expires=1470922942&id=id&accname=guest&checksum=AA439A072DF1BD0CB617DD7A774FAE0B. Data for Iceland are not available. Data on public corporations for Belgium, Italy and Portugal are not available and thus these countries are not presented. Data for the Netherlands are from 2005 and are expressed in full-time equivalents. Data for Germany, Ireland, Sweden and the United Kingdom are from 2010. Data for Finland and Greece are from 2008 and data for Norway from 2007. Data for France are from 2006.
- 25.
Between 1970 and the mid-80s employment growth in the Nordic countries first of all took place in the public sector, in particular in Denmark and Sweden. The expansion of the service sector was mainly a welfare state phenomenon opening the path towards a strong increase in the women’s labour force participation rate.
- 26.
OECD (2016), Income inequality (indicator). https://doi.org/10.1787/459aa7f1-en, https://data.oecd.org/inequality/income-inequality.htm.
- 27.
The poverty rate is the ratio of the number of people whose income falls below the poverty line; taken as half the median household income of the total population.
- 28.
The P90/P10 ratio is the ratio of the upper bound value of the ninth decile (i.e. the 10% of people with the highest income) to that of the first.
- 29.
OECD (2016), Income inequality (indicator). https://doi.org/10.1787/459aa7f1-en; http://www.oecd-ilibrary.org/social-issues-migration-health/data/oecd-social-and-welfare-statistics/income-distribution_data-00654-en.
- 30.
World Economic Forum (2014).
- 31.
- 32.
Nordisk Socialstatistisk Komité (2009).
- 33.
See http://ec.europa.eu/economy_finance/publications/european_economy/2014/pdf/ee8_en.pdf. Data for Iceland were not presented.
- 34.
Increased mobility of capital and labour across national boundaries may imply that adjustments of wages, working conditions, social benefits and tax rates are subjected to downward pressure.
- 35.
- 36.
On the idea of self-destructive mechanisms, see Petersen (2014), in particular, pp 175–189.
- 37.
- 38.
Andersen (1954).
- 39.
Koch (1956).
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Petersen, J.H. (2019). Nordic Model of Welfare States. In: Letto-Vanamo, P., Tamm, D., Gram Mortensen, B.O. (eds) Nordic Law in European Context. Ius Gentium: Comparative Perspectives on Law and Justice, vol 73. Springer, Cham. https://doi.org/10.1007/978-3-030-03006-3_2
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