II‑ The Contexts of Industrial Relations in Sweden
•Economic Context
•One of most open economies in world
•Welfare State
–Comprehensive free medical care
–Unemployment benefits
–Poverty virtually non-existent
One of most open economies in world
    >1/2 GDP traded
   More than US, more than any country in course, more than Japan

Welfare State
Various social insurance & welfare schemes come to about 20% GDP
About 2 times U.S. rate - cut substantially 1990s
Over half government expenditure (which is 60% GDP) is transfer payments
Comprehensive free medical care
Pension system ‑ 2/3 earnings
Sick leave, cut in 1991 but still most generous in Europe and thus highest rate of sick time in Europe
Parental leave ‑ pay up to 13 months for couple to share.  80% earnings up to $40,000 year.  Government Commission looking for method to convince men to take more parental leave

Unemployment benefits
   Up to 80% of wages but must accept training and placement
   Since 1993 no pay for first five days

Poverty virtually non-existent
   Lowest rate of child poverty in the course
   ¼ US rate of child poverty