OECD Economic Surveys: Sweden 2017

Sweden’s economy has fared well in recent years thanks to strong
macroeconomic, fiscal and financial fundamentals, as well as a competitive and
diversified business sector. Output has been lifted by an expanding labour
force, investment and lately a pick-up in productivity. Unemployment is
receding, although it remains high for vulnerable groups, notably the foreign-
born. While income inequality is relatively low, it has risen more rapidly
than in any other OECD country since the 1990s. Capital gains boosted top
incomes, while benefits increased more slowly than wages. High labour market
entry thresholds, spatial segregation, and bottlenecks in migrant settlement
reduce opportunities and social mobility. Sweden is one of the world’s most
gender-equal countries, even though foreign-born women are lagging behind.
Women have a high employment rate, outperform men in education and are well
represented in government and parliament. However, gender wage differences
persist: women are under-represented on private company boards, in senior
management positions, in many well-paid and influential professions and among
entrepreneurs. This Economic Survey of Sweden assesses the country’s recent
macroeconomic performance and prospects, and offers recommendations to foster
more inclusive growth. In particular, reforms to housing, wage subsidies and
migrant settlement and integration would raise the incomes and opportunities
of the disadvantaged. So would a more systematic approach to benefits
uprating. Better shared parental leaves would raise gender equality further.
Fostering women entrepreneurship and promoting entry of women in senior
management is also crucial.

Special Features: Income inequality; Gender inequality

*[XIXe]: Dix-neuvième