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How effective are mobility subsidies in targeting the unemployed? Lessons from the Swedish Model, 1965–1975

Molinder, Jakob LU (2022) In Economic and Industrial Democracy 43(4). p.1724-1746
Abstract

The Swedish Model on the labor market has been celebrated as a way to combine mobility with low unemployment and small wage gaps. As part of the model, relocation allowances were pioneered from the late 1950s. The program expanded thereafter and as much as 1% of the population in the high-unemployment north moved with assistance in the 1960s. Today, migration incentives are discussed to address pressing unemployment problems in Europe and the United States. What can Sweden’s experience tell us about the prospects of such programs? This article studies the usage of relocation allowances through a case study of Västernorrland County from 1965 to 1975. The analysis shows that there was a strong selection into the program by younger... (More)

The Swedish Model on the labor market has been celebrated as a way to combine mobility with low unemployment and small wage gaps. As part of the model, relocation allowances were pioneered from the late 1950s. The program expanded thereafter and as much as 1% of the population in the high-unemployment north moved with assistance in the 1960s. Today, migration incentives are discussed to address pressing unemployment problems in Europe and the United States. What can Sweden’s experience tell us about the prospects of such programs? This article studies the usage of relocation allowances through a case study of Västernorrland County from 1965 to 1975. The analysis shows that there was a strong selection into the program by younger persons, recent graduates and from sectors with good employment prospects. The experience from Sweden highlights the difficulty of implementing programs to induce migration for those with the highest risk of unemployment.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Labor mobility, mobility subsidies, relocation allowances, Swedish Model
in
Economic and Industrial Democracy
volume
43
issue
4
pages
1724 - 1746
publisher
SAGE Publications
external identifiers
  • scopus:85118215209
ISSN
0143-831X
DOI
10.1177/0143831X211047887
language
English
LU publication?
yes
additional info
Publisher Copyright: © The Author(s) 2021.
id
cf973bb2-a5d3-497b-8fab-2e905cc14f5e
date added to LUP
2021-11-24 14:47:58
date last changed
2023-01-16 10:14:41
@article{cf973bb2-a5d3-497b-8fab-2e905cc14f5e,
  abstract     = {{<p>The Swedish Model on the labor market has been celebrated as a way to combine mobility with low unemployment and small wage gaps. As part of the model, relocation allowances were pioneered from the late 1950s. The program expanded thereafter and as much as 1% of the population in the high-unemployment north moved with assistance in the 1960s. Today, migration incentives are discussed to address pressing unemployment problems in Europe and the United States. What can Sweden’s experience tell us about the prospects of such programs? This article studies the usage of relocation allowances through a case study of Västernorrland County from 1965 to 1975. The analysis shows that there was a strong selection into the program by younger persons, recent graduates and from sectors with good employment prospects. The experience from Sweden highlights the difficulty of implementing programs to induce migration for those with the highest risk of unemployment.</p>}},
  author       = {{Molinder, Jakob}},
  issn         = {{0143-831X}},
  keywords     = {{Labor mobility; mobility subsidies; relocation allowances; Swedish Model}},
  language     = {{eng}},
  number       = {{4}},
  pages        = {{1724--1746}},
  publisher    = {{SAGE Publications}},
  series       = {{Economic and Industrial Democracy}},
  title        = {{How effective are mobility subsidies in targeting the unemployed? Lessons from the Swedish Model, 1965–1975}},
  url          = {{http://dx.doi.org/10.1177/0143831X211047887}},
  doi          = {{10.1177/0143831X211047887}},
  volume       = {{43}},
  year         = {{2022}},
}