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The Swedish Lesson: Welfare States Create Moral Hazard

2019-05-18 Bullfax.com

"We should remember that generous welfare states pose a moral hazard", Bullfax argues. "Gatekeeping functions have been introduced, mainly for sick-leave claims, to limit over-utilization and outright cheating.Economist Martin Ljunge [IFN] suggests that the reforms may need to be quite far-reaching to reverse the long-term effect that the welfare state has had."

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