The Labour Market Regimes in the Nordic Countries: A Comparative Analysis

Abstract

The aim of the article is to discuss the differences between the labour market regimes in Denmark, Norway, Sweden and Finland in a historical perspective. The foundations of the regimes were laid more than 100 years ago. Differences in labour market institutions and practices are in fact substantial, particularly as regards the role of the state in collective bargaining and conflict resolution, but also in connection with incomes policy. While the state for a long time has played a significant role in Denmark and Norway, mainly concerning conflict resolution, and in Finland since the 1960s in the form of comprehensive incomes policy agreements, a doctrine of freedom of the labour market from state intervention has dominated in Sweden. These divergences can to a great extent be explained by differences in the democratization process and the organizational structure, particularly in the trade unions, which reflect different timing and structure in the process of industrialization. ‘Path dependency’ has been strong in the North. The main elements of the four national labour market regimes are still there, such as trade union fragmentation and strong instruments for conflict resolution in Denmark and Norway, relatively advanced social partner responsibility for bargaining outcomes and conflict resolution in Sweden (although sometimes against the background of threats of state intervention), and almost continuous tripartite consultation in Finland as a stabilizing element in a much more turbulent political environment than in the neighbouring countries. There are no clear tendencies towards convergence between the Nordic labour market regimes.