Evolution of social protection systems and incentives in Finland and its comparison countries
Palviainen, Heikki (2020-01-29)
Julkaisun pysyvä osoite on
Based on simulated counterfactual analyses, this report studies the long-term evolution of social protection systems and incentives in Finland and its comparison countries. The results show that Finland had the most redistributive policy changes in the studied time period. The Danish flexicurity model involves high benefit levels, and the participation tax rates were the highest. Germany had the lowest participation tax rates. The Swedish work-line policy increased the risk of poverty by 1.0 percentage point and the Gini coefficient by 0.4. In Sweden, the behavioural effects did not fully offset the negative static effects on the risk-of-poverty rate and inequality. From a policy perspective, the results suggest that the Nordic model has been resilient. In Sweden, a significant increase in the risk of poverty implies that there are other factors, such as immigration, that challenge the Nordic model.
H23, I32, I38
Welfare states, Nordic countries, social protection, poverty, microsimulation