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

Contact

Ph: +46 8 665 4537
fredrik.heyman@ifn.se

Pehr-Johan Norbäck

Contact

Ph: +46 8 665 4522
Mob: +46 73 547 3379
pehr-johan.norback@if...

Lars Persson

Contact

Ph: +46 8 665 4504
lars.persson@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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