Keeping regional inequality in check in Sweden
Regional inequality is low in Sweden compared to most other OECD countries, but has
been rising over the past decades, fuelling discontent in parts of the country, whose
inhabitants feel left behind. The younger population is increasingly concentrated
in the largest cities, which also enjoy the highest productivity growth. Demographic
trends exacerbate the difficulty in providing equal public services across the country.
Healthy public finances are allowing the government to increase its support to municipalities
and regions to adjust to demographic developments and local operating conditions.
Beyond this effort, keeping regional inequality in check will require upgrading the
sub-national government fiscal framework, enhancing public service efficiency, especially
through digitalisation, and promoting regional convergence further, especially by
strengthening the role of universities in regional knowledge and innovation networks.
Published on November 19, 2021
In series:OECD Economics Department Working Papersview more titles