The wage share and the welfare state in Sweden, 1900-2013

Ahnland, Lars, 1974- (author): Stockholms universitet,Ekonomisk-historiska institutionen

(creator_code:org_t)

Abstract Subject headings

This study explores the long run relationship between the wage share in the private sector and the extent of the Swedish welfare state in 1900-2013. It uses a novel approach where government intervention in the economy is broken down into three different aspects: Government consumption, government investment and residential construction. The construction of dwellings may seem questionable at first glance, since it to a large degree has been carried out by private interests. The fact that housing policy has been an important part of welfare policy through several channels motivates inclusion of the variable however. Government investment, mainly in infrastructure, and house construction as factors influencing the functional income distribution has been neglected in previous research. Through the use of single-equation cointegration technique, the study finds a positive and robust long run relationship between the private wage share and all three welfare variables.

About the subject

SOCIAL SCIENCES: SOCIAL SCIENCES; and Economics and Bu ...; and Economic History

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