European labour markets are in a state of flux due to the changing market situation induced by international integration. This process affects wage formation through more fierce product market competition and increased mobility of jobs. This development is by some observers taken to enforce...

Before the great recession of 2008-2009, the "flexicurity" model (with flexibility for firms to adjust their labor force along with income security for workers through the social safety net) attracted attention for its ability to deliver low unemployment. But how did it fare during the...

The Great Recession has revived aggregate demand management policies. In particular, automatic stabilizers are praised since they are rule based and thus operate swiftly and symmetrically across the cycle. However, automatic stabilizers are not a result of macro design but the structure of the...

The economic performance of the Nordic countries -- The Nordic welfare model -- How does the model work? -- Labor markets, the flexicurity model -- Ageing populations -- Globalization and migration -- The wealth dilemma.