Economic Survey of Sweden 2005: Raising hours worked
This chapter discusses other ways to increase labour supply, aside from reducing sickness absences. High labour taxes and the benefit system are contributing to reduce hours worked, and it is recommended that marginal tax rates be reduced by moving to other tax bases. Generous leave schemes also reduce working hours. Although labour force participation is high in general, there are still pockets where it can be raised, notably by getting young people through the educational system faster, improving the integration of immigrants and reducing incentives to early retirement. Labour supply would also benefit from stricter application of unemployment rules and from the elimination of ineffective active labour market programmes.
Long abstract
