Economic Performance in the Nordic World

Book excerpt: The Nordic model rests on two pillars: the social safety net and the provision of services like education, childcare, and healthcare for all. It can also be characterized as an employment model, since its financial viability depends upon a high labor participation rate with very few working poor. Economist Torben M. Andersen lays out the model's structure and highlights factors important for understanding its economic performance. He then looks into specific policy areas based on Denmark's experiences and addresses the challenges arising from new technologies and globalization.