Show Less
You do not have access to this content

Digitalization, Immigration and the Welfare State

Mårten Blix

The Swedish welfare state finds itself in the middle of two major upheavals: The impact of technology and immigration. Having taken in more refugees per capita than most other countries, the pillars of the welfare state are being shaken. Digital technologies are set to strengthen already existing trends towards job and wage polarization. This book explores how these trends are more pronounced due to the rigidity of the labor market and the comprehensiveness of tax-financed welfare services.
Show Summary Details
This content is available to you

Index

Mårten Blix

3D printing 106
Afghanistan
asylum seekers from 132
aging population 967
increased costs due to 13, 68
retirement age 101
Airbnb 78, 108, 11169, 82
Mechanical Turk 137
Apple, Inc. 105
product lines of
App Store 69
iPhone 4
tax avoidance efforts of 100
Arab Spring 117
Austria
unmet needs in 130
automation 80, 83, 104, 144, 159
agriculture 81
in cloud 1067
of high-skilled jobs 81
impact on government revenue 105
limitations of 84
of low-skilled jobs 8081
manufacturing 80
Autor, David 83
Barovier, Angel
discovery of crystal 689
barrier
entry 79
labour market 39, 57
exit 79
trade 108
base erosion profit sharing (BEPS)
concept of 889
Baumol, William 79
Beveridge curve 30
black market 104
Brynjolfsson, Erik
Second Machine Age, The144, 159
bubble 1, 22, 149
asset 1612
housing market
risk of 36
business cycles 30, 143
Canada
income inequality in 124
temporary work protections in 52
capital 21, 55, 104
controls 22
human 77
input factors of 14
taxation of 93
Carrier, William
invention of air conditioning 69
cloud 5, 89, 104
automaton in 7, 1067
migration to 9
platform-based labour markets in 83, 1078
storage in 72
Coase, Ronald 85
collective bargaining agreements 3, 12, 116
development of 7
enforcing of 42
wage-bargaining system 10, 18, 43, 59, 63, 1557
legitimacy of 10, 15051
Commission of the Future of Sweden 95
competitiveness 16, 30, 42, 63, 79, 85, 107, 116, 153
international 10
poor 44
role of skills in 134
Cowen, Tyler 159
Cyprus 45
Czech Republic
non-standard work in 78
unmet needs in 130
debt 17
government
private 1, 42
public 28, 42, 45, 68, 148
demography 61, 95, 101, 140
changes in 41, 94, 100
Denmark 35
minimum wage in 59
spending on welfare services in 126
temporary work in 50
deskilling 4, 734
evidence of 1446
digitalization vii, 34, 710, 12, 14, 37, 59, 66, 90, 99, 1045, 108, 137, 1634
digital storage 712
cloud 72
economic influence of transaction costs 66
impact on labour market 40, 67, 129
digital disruption 835
impact on labour unions 62
impact on tax revenue 11213
impact on welfare state 1213
erosion of tax bases 89
impact on work 5
on-demand work 5
egalitarian 8, 114, 116
employment protection legislation (EPL) 52
entrepreneurship 84, 113, 138
incentives for 21, 148
self-employed 134
Etsy 152
European Commission
measurement of digital skills 140
use of Maastricht method 28
European Customs Union (ECU) 245
European Union (EU) 3, 17, 41, 56, 110, 120, 128
budget of 28
Maastricht Treaty (1992) 28
member states of 116, 118
public debt of 45
Even 155
Facebook 69, 789
servers of 107
Fair Crowd Work 155
Finland 35
minimum wage in 59
temporary work in 50
fiscal policy
France 7, 35
collective wage bargaining agreements in 59
Paris 114
self-employment in 54
temporary work in 5051
Gates, Bill 75
General Data Protection Directive
General Electric
tax avoidance efforts of 100
Germany 118, 138
Bundestag 26
Hartz reforms in 6061, 157
income inequality in 124
non-standard work in 78
refugee population of 151
self-employment in 54
temporary work in 50
gig workers 6, 54
Gini coefficient 123, 126, 128
use in measurement of income inequality 26
globalisation 16, 66, 114, 1512
Go (game) 81, 83
Google, Inc. 79, 105
Android (operating system) 69
tax avoidance efforts of 100
Government Spring Bill (2016) 3, 100
Great Recession (2007–9) 2, 4, 10, 25, 278, 62, 78
growth of unmet needs following 130, 132
impact on public debt 68
impact on unemployment levels 412, 68
youth 51
Greece 17
dependent self-employment in 54
disposable incomes in 130
poverty rates in 130
temporary work in 52
Hagen, Jürgen von 17
Hawkins, Stephen 75
housing market 1
bubble
risk of 36
undersupply of 456
humanitarianism 2
tradition of 40
Hungary
non-standard work in 78
IBM see International Business
Machines
IKEA 84
tax avoidance efforts of 100
immigration 23, 1112, 37, 64, 156
assimilation 132
economic impact of 40, 115
income inequality 115, 121
impact on labour market 14
impact on welfare state 12
inflows 62, 129
influence of rental market 456
large-scale 17
low-skilled 8, 149
net 11819
political opposition to 115
registration of 3, 132
incentives 11, 25, 27, 39, 46, 56, 63, 78, 81, 88, 934, 99, 152
automation 9, 84, 144, 156
economic 12
entrepreneur 21, 148
institutional 17
taxation 20, 25
work 1, 20, 85, 128
reduction of 14, 35, 117, 160
income inequality 8, 118, 123, 128, 148, 150
role of immigration in 115, 121
use of Gini coefficient to measure 26
India 154
Industrial Revolution 678, 73, 90, 104
deskilling in 734
inflation 17, 22
targets 43
inflexibility
market economy confrontation of 41, 47
insider 5, 10, 61, 845, 119, 149
labour market 6, 12, 40, 46, 58, 63, 138
rights of 42
integration 3
immigrant 11
coordination of 163
labour market 128, 138
interest rates 245, 30, 41
negative 25
International Business Machines
(IBM) Corporation 105
Deep Blue 81
Watson 4, 81
Iran 120
asylum seekers from 132
Iraq 120
asylum seekers from 132
Italy 17
dependent self-employment in 54
temporary work in 51
unmet needs in 130
Venice 68
Japan 31
poverty rate in 129
Jeopardy (TV series) 81, 83
jobs
high-skill
automation of 81
low-skill
automation of 8081
polarization 68, 73, 104, 108, 138, 145
security 67
Johnson, Steven
How We Got to Now: Six Innovations that Made the Modern World68
JP Morgan 79
Kasparov, Gary
defeated by Deep Blue (1997) 81
King 70
Klarna 45, 70
krona
depreciation of (1992) 28
devaluing of 22
labour market 14, 7, 1012, 17, 19, 31, 39, 44, 534, 579, 73, 93, 117, 119, 128, 132, 138
age differences 89
characteristics of 42
digital 77
digital skills in 140, 142
deskilling 144
entry barriers 39
education 139
entry-level wages 57
female participation in 19
flexibility of 63
gender inequality in 60
impact of digitalization on 40, 67, 129
digital disruption 835
impact of immigration on integration of immigrants 14, 40
refugee crisis 63
insider 6, 12, 40, 46, 58, 63, 138
online 109
platform-based 67, 79, 856, 111, 1523, 1558
characteristics of 778
cloud 83, 1078
disruption of 7980
resource allocation 10910
unskilled work in 1578
polarization 756, 117, 15051, 163
role of improving skills as means to reduce 1589
service sector 4
skill demand in 74
supply and demand 45, 1523
wage structure issues 46
labour unions 1, 12, 40, 43, 58
blue-collar (LO) 1011, 21
density of 478
impact of digitization on 62
membership 10
levels of 48, 151
self-employed 1545
white-collar 10
Laffer curve 26, 105
Latvia 154
legitimacy 7, 10, 62, 99, 114, 161
of collective wage bargaining 10, 15051
in labour unions 10, 57
of social contracts 116
of welfare state 11718
Lehman Brothers
collapse of (2008) 25
Lindbeck Commission (1992) 41, 161
creation of 25
recommendations of 1617, 257, 29
Lindgren, Astrid 2021
Löfven, Stefan 9
löntagarfonder
creation of (1984) 21
Luddites 74
macroeconomics 2, 101, 148
manufacturing 4, 27, 71, 74, 104
automation in 80
decline of employment in 80
minimum wage in 59
market economy 6, 41, 66
countering of inflexibility 41
McAfee, Andrew
Second Machine Age, The144, 159
Mexico
income inequality in 123
Microsoft Corporation 75
middle-class
automation of jobs 159
shrinking of 73, 138, 150
Mojang 45, 70
monetary policy 17, 22, 245, 56
multinational corporations
corporate tax planning efforts 88
tax avoidance efforts 100
municipalities 3, 44, 91, 94
costs in 100
labour taxation 9
Narrative Science
Quill 82
Netherlands 7
collective wage bargaining agreements in 59
non-standard work in 78
temporary work in 51
unmet needs in 130
network effect 66, 68, 7073, 85, 138, 157
importance of 71
Norway 77
minimum wage in 59
temporary work in 50
Obama, Barack
healthcare policies of 128
oil 17, 138
price shocks 22
Organisation for Economic
Co-operation and Development
(OECD) vii, 23, 32, 54, 63, 66, 76, 88, 101, 123, 137, 145, 14950
Employment Outlook56
measurement of digital skills 140
member states of 2, 4, 78, 14, 1920, 28, 31, 35, 41, 46, 678, 74, 78, 117, 124, 148
taxation systems of 18
temporary work levels in 50
Programme for the International Assessment of Adult Competencies (PIAAC) 43
Programme for International Student Assessment (PISA) 30, 43, 140, 1423
outsider 10, 14, 3940, 61, 67, 119, 138, 156, 162
lack of protection for 57
permanent 117, 164
outsourcing 5, 9, 83, 106, 108
global 106
use of technology for 85
Paine, Thomas
Agrarian Justice(1795) 160
parental leave 85, 93, 128, 137
rights to 1819, 44
Parker, Phillip 82
Peers and Freelancers Union 155
pension payments 31, 44, 129, 132, 137
indexation of 93
Persson, Göran
Swedish Financial Minister 27, 161
Pew Research Center
study on median incomes (1999–2014) 4
platform 567, 84, 11112
-based labour
markets 67, 779, 83, 856, 10711, 1523, 1558
-based work 6, 152, 1545, 158, 163
digital 77
providers 5, 108
polarization 5, 7
economic 116
income 118
job 68, 73, 83, 104, 108, 138, 145
labour market 756, 117, 15051, 1589, 163
relationship with government revenue 111
social impact of 8
thinning of middle class 57
wage vii, 62, 73, 767, 108, 145
populism 7, 94, 11617
extreme 68
Portugal
poverty in 126
temporary work in 52
unmet needs in 130
poverty 114
anchored 126
rates 129
relative 126
productivity growth 29, 63
Public Employment Service 42
public sector 6, 9, 434, 6061, 67, 85, 93, 116, 163
efficiency 98
long-run cost of immigrants 3
Reagan, Ronald
economic policies of 26
real estate market 22
commercial 23
reallocation 1, 44, 63, 159
as cause of unemployment 74
poor 55
sectoral 63, 156
refugees 40, 115, 120, 138
assimilation of 121
crisis 11
impact on labour market 63
education levels of 120
skill levels of 120
welfare of 118
Reinfeldt, Fredrik 118
rental market
influence on immigration 456
regulation of 149
Republic of Ireland 45
disposable incomes in 130
returns to scale 7071, 73
Riksbank
attempted defence of fixed exchange rate (1992) 24
inflation targets of 43
Russian Federation
Annexation of Crimea (2014) 35
Saab
bankruptcy of (2011) 58
SACO
self-employed members of 154
Saltsjöbaden Agreement (1938) 43
Second World War (1939–45) 2, 17
self-employment 534, 134, 137
dependent 54
entrepreneurs 134
freelancers 56, 1523, 158
labour union membership 1545
as non-standard work 78
safety nets for 14
social security payments 137
shadow economy 90, 104, 1078
sharing economy 5, 107
costs in 85
Sherpa Share 155
sick-related absences 40
skills 3, 7, 14, 16, 30, 44, 57, 61, 634, 81, 84, 93, 120
cognitive 5
decline of 64, 67, 75
demand for 4, 41, 645, 734
digital 13940, 146
massive open online courses (MOOCs) 139
measurement of 140
poor 143
high 85
literacy 43
personal/social 80
updating of 153
Skype 70
Slovak Republic
non-standard work in 78
Slovenia
temporary work in 52
Social Democratic Party 33, 89
electoral defeat of (1976) 21
social safety net 7, 14, 58, 61, 85, 114, 132
social security
self-employment and 137
social tension 8, 12, 116
socialism 14
Socialist–Green coalition 33, 37
economic policies of 34
Somalia 120
asylum seekers from 132
Spain
collective wage bargaining agreements in 59
disposable incomes in 130
non-standard work in 78
temporary work in 50, 52
Spotify 45, 70
Stability and Growth Pact 28
strikes 1920, 57, 59
large-scale 20, 163
right to 42
Susskind, Daniel
Future of the Professions, The80
Susskind, Richard
Future of the Professions, The80
Sweden vii, 2, 78, 12, 1920, 43, 61, 66, 845, 101, 108, 11415, 118, 156
economy of 1, 17, 26
GDP per capita 1, 23, 2830
education system of 424
government of 3, 223, 45, 101, 103
healthcare sector of 93, 95
housing market of 1, 36, 45, 149
Husby Riots (2013) vii, 114, 164
immigrant registration in 3, 132
inequality in 129
income 124
Luleå 107
minimum wage in 61
non-standard work in 78
Parliament 212, 27, 29, 37, 115, 1612
pension system of 145
population growth in 11819
public debt of 148
refugee population of 151
self-employment in 54
dependent 54
spending on welfare services in 126
Stockholm 45, 114
temporary work in 523
agencies 52
Trollhättan 58
unionization in 478
Sweden Democrats
ideology of 115
Swedish Association of Local
Authorities and Regions 94
projection of need for tax increases (2017–19) 100
Swedish Employment Agency 44
support for 59
Swedish Experiment 39
Swedish Labor Policy Council 156
Swedish Model 9, 14, 156, 162, 164
development of 14, 39, 66, 149
limitations of 148
structure of 1
Swedish National Mediation Office
(Medlingsinstitutet) 10, 42
Switzerland 110
Syria 120
asylum seekers from 132
Civil War (2011–) 35
tax bases 107
erosion of 13
mobility of 152
taxation 78, 11, 13, 16, 34, 37, 55, 63, 89, 97, 100, 103, 1078, 111, 116, 162
avoidance of 100
capital 93
corporate 88
deductions 138
environmental 101
evasion 108, 11011
expenditures 278
havens 110
income 33
joint 18
local community 934
loopholes 25, 111
marginal 2021, 25, 33, 93
payroll 5, 44
progressive 111
revenue 19, 67, 101, 103, 105, 1079, 11112
from labour income 10910
impact of digitalization on 11213
reduction of 934, 100, 104
use in welfare state funding 67, 89, 91, 93, 150, 152
value-added (VAT) 25, 112
transaction costs 5, 77, 108, 111, 157
influence of digitalization on 66
Trygghetsrådet58
Turkey
spending on welfare services in 126
Uber 4, 67, 789, 108, 137, 152, 154
court cases brought against 54
unemployment 27, 2931, 33, 36, 412, 130, 142
benefits 137
inadequate skills as cause of 143
youth 41, 51, 68, 130
Unionen
self-employed members of 1545
United Kingdom (UK) 89, 154, 157
House of Commons 26
self-employment in 54
temporary work in 50
protections 52
unmet needs in 130
United States of America (USA) 7, 256, 28, 75, 90, 93, 114, 116, 145, 150, 154
Affordable Care Act 128
Congress 26, 163
Federal Reserve 130
government of 78, 110
food stamp programme 7
healthcare system of 130
income inequality in 123
non-standard work in 78
temporary work protections in 52
wage growth in 4
Universal Basic Income (UBI) 149, 15961
criticisms of 160
development of concept 160
Upwork 152
wages 1, 7, 11, 33, 58, 134, 150
dispersion 11, 15, 42, 46, 58, 144, 156
formation 22, 43
growth of 75
inequalities 60
minimum 59, 612
polarization vii, 62, 73, 767, 108, 129, 145
real 22
structure 1, 8, 46
development of 8
median 4, 78, 124, 126, 12830, 150, 158, 162
welfare state vii, 2, 1213, 1617, 25, 2930, 37, 41, 68, 88, 945, 989, 103, 11517, 148, 164
benefits system 31
entitlements 3
funding of 989, 118, 126
use of tax revenue 67, 89, 91, 93, 150, 152
impact of
digitization 1213
immigration 12
payments 356
structure of 18
pension system 18, 26, 145
Wolf, Alison
observation of quality issue in skill development 144
work
non-standard 789, 134
part-time 86
as non-standard work 78
permanent
protections 46
regulation of 5051
temporary 1, 5, 7, 41, 50, 523, 556, 134
agencies 42
lack of protections 5, 467, 52
as non-standard work 78
reduction of 6