4 Nordic welfare states: Up to challenge?

Abstract

<p>This chapter analyses the extent to which the contemporary Nordic model is up to the challenge in the current economic and demographic landscape. The chapter first theorises the Nordic welfare states by discussing the four ingredients of the Nordic model: 1) universal welfare state provision, 2) extensive public services, 3) high labour market participation, and 4) gender equality in politics and practices. These dimensions are then empirically investigated by analysing the key welfare state indicators for the last 10 years (2010-2020) in Sweden, Denmark, Norway, Finland and Iceland. The analysis confirms the specificity of Nordic welfare states when compared to the EU27 or OECD averages. In general, the Nordic countries continue to entail generous systems of welfare provision and public services and fuel high labour market participation and gender equality. Yet, there are cracks in the contemporary Nordic model that suggest that universalism may not always be compatible with changing world. The future of the Nordic model seems to be up to the challenge, but it needs to fit with new social and economic conditions and to mitigate income and social inequalities, to continue to be effective also in the coming decades.</p>