Disability and employment: sustainability of 'the Nordic model'

Abstract

There is a need to integrate comparative welfare state studies with public health and health inequality research. Up to now, these two research disciplines have been apart and separated by institutional and disciplinary boarders within and between countries. This is now about to change.1 This is an important step forward as it entails the potential to shed new light on one of the hottest issues related to the future of the welfare state: employment problems and worklessness, especially among disadvantaged groups. In many countries, the fear of dwindling labour force participation is a cause of great political concern since it threatens the economic fundament of the welfare state, especially in the Nordic countries. This is a serious threat to all modern economic systems, but in particular to the Nordic model. The defining features of the Nordic model are: generous and universal welfare benefits; and free or cheap social and health services. In order to pay for such comprehensive public welfare provision, it relies on relatively high tax rates and a broad tax base—i.e. high employment; the Nordic model is hardly sustainable without a high rate of labour market participation. Over the past 15 years the Nordic countries have performed quite well, and contrary to common economic thinking, they have been …