Working Paper No. 1079

The Turnaround of Swedish Industry: Reforms, Firm Diversity and Job and Productivity Dynamics

Published: September 1, 2015, revised November 2015Pages: 41Keywords: Regulations; Allocative efficiency; Productivity; Job dynamics; Matched employer-employee data; Industrial structure and structural changeJEL-codes: D22; E23; J21; J23; K23; L11; L16; L51

The Turnaround of Swedish Industry: Reforms, Firm Diversity and Job and Productivity Dynamics Fredrik Heyman, Pehr-Johan Norbäck and Lars Persson

This paper examines the Swedish industrial reorganization process that took place from 1990-2009. We argue that the early adoption of information and communication technology (ICT) in Swedish industry was a crucial element in the success of the industrial restructuring process. We also argue that several reforms in the 1990s mitigated the insider-outsider problem in the labour market and incentive problems in the Swedish business sector: the deregulation of the wage negotiation system, the deregulation of product markets, and the deregulation of the market for corporate ownership. The main prediction that results from our institutional examination is that technological change and economic reforms benefitted more productive firms and factors while punishing less effective firms and factors. We find support for our thesis by using detailed matched plant-firm-worker data. 


Fredrik Heyman


Ph: +46 8 665 4537

Pehr-Johan Norbäck


Ph: +46 8 665 4522
Mob: +46 73 547 3379

Lars Persson


Ph: +46 8 665 4504

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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