A Viable Alternative: the Scandinavian Model of "Social Democracy"

Abstract

Abstract: This paper aims at discussing how far the Scandinavian model of “social democracy”, which is assumed to be the Swedish model, still represents a viable alternative for the development of other industrial relations systems. The Scandinavian model, characterised by labour market peace and centralised bargaining, is based on two main pillars: “active labour market ” and “solidaristic wage ” policies. Its “golden age ” lasted more than forty years targeting full employment, therefore here it is argued if it is possible to transfer such a model, as a whole or partially, to Italy. In examining such issue this analysis develops a short comparison between the industrial relations systems in the two countries identifying the main convergences and divergences at the institutional level and considering the possible effects on employment and wage growth. JEL Classification number: P51 Following Kjellberg in Ferner and Hyman (1992) between Nordic countries there are common features in their industrial relations systems. For example, Nordic industrial relations characteristically reflect a relative balance of power between capital and labour: compromises between

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