Swedish welfare state

The Swedish welfare state (also known as " Folkhemmet ") was established as a political project from the 1930s. During this time, the term is closely linked to Prime Minister Per Albin Hansson , who took up the term folkhemmet in a debate in the Reichstag in 1928 and turned it into a concrete political program. It reached its peak in the 1970s when it covered all citizens from toddlers (via municipal child welfare ) to pensioners (via municipal elderly welfare). The downside of this system was that it led to marginal tax rates above 100%. Astrid Lindgren , who was supposed to pay 100.1% income tax on her income, described this in the newspaper article " Pomperipossa in Monismanien ". The political discussion that followed the article is said to have been a contributing factor in the Social Democrats' loss of election in the 1976 Reichstag elections after 44 years of social democratic rule. The basic socio-political assumptions behind the Swedish welfare state are also referred to as the “Swedish model” , “ Third Way ”, or Rehn-Meidner model .

As a result of the bank bailouts from the Swedish banking crisis from 1990 to 1992 , drastic changes occurred, in particular a cut in many social benefits . The expected demographic development led to a radical restructuring of the pension system, which is linked to economic development.

The welfare state is financed partly by income taxes, which are levied by the municipalities and provincial parliaments, and partly by employer contributions of currently (2018) 31.42% of gross wages.

Historical overview

In Sweden , the first approaches to social security can be found as early as the 16th century. At that time the Brukssamhallen system was widespread. After all of Scandinavia was still known as the poorest region in Europe in the early 20th century and also for the resulting high number of emigrants , a rapid upswing and an increase in the standard of living began in Sweden as well, due to industrialization until 1910 (he was even then one of the highest in a global comparison). In 1913, for example, a universal pension system was introduced which enjoyed widespread support from all political camps in the Swedish political landscape. The outbreak of the First World War also had a stimulating effect on the Swedish economy due to the increased demand for raw materials. This development was dampened by a financial and structural crisis and an economic decline in the 1920s. In these years the first name of the welfare state finds its origin: folkhemmet - the people's home. The metaphor was introduced into the political discourse by the social democrats of the “ Sveriges socialdemokratiska arbetareparti ”, or SAP for short , especially Per Albin Hansson , who was to become prime minister in 1932.

Parental insurance and child care

Part of family policy is parental insurance, which covers loss of earnings by parents while caring for young children. It lasts 16 months, two months of which are tied to the father and two months to the mother. Parental insurance pays 80% of the previous income, but no more than 2980 euros gross. From 2008 to 2016, the municipalities also had the option of paying a monthly contribution of 320 euros to parents who want to continue to stay at home with their children instead of using public childcare after the expiry of parental insurance. This was possible up to the age of three. From the child's second year of life, families are entitled to public childcare. The former kindergarten was replaced in 1998 by the pre-school for 1- to 5-year-olds (with its own curriculum and under the supervision of the Central Schools Office), which has an educational role in addition to childcare. There are also day-care centers where 13% of the children in care go. 42% of one-year-old children and 78% of two-year-old children attended childcare facilities in 2000. There are recreational homes for children in pre-school and primary school, which in 2000 were attended by 66% of children between the ages of 6 and 9. The care facilities are fee-based, whereby the fees depend on the parents' income. However, according to the School Act, attendance at preschool is free of charge for up to 525 hours per year; this applies from autumn of the year in which the child turns three.

Another family policy benefit is the general child benefit (currently (2017) 110 euros per month) for every child up to the age of 16. Large families receive additional support, which increases progressively with the number of children (16 euros for two children, 440 euros for six children). Child benefit is tax-free.

education

Main article: Swedish education system

The boundary between childcare and school is fluid, as preschool (kindergarten) is already part of the education system. Compulsory schooling begins at the age of 7 and includes nine years of primary school. Most of the pupils then continue their education in the grammar school, in which both the practical occupations and the preparatory courses are integrated (the auxiliary schools are grammar schools, särskolgymnasium). So there is no teaching in the German sense. More than a third of a year begins university studies. It should be noted that all post-school education is post-high school and therefore cannot always be compared with German university education. So what is a vocational school, master craftsman training or technical college in Germany always counts as a degree in Sweden. All of these educational institutions are free of charge for EU and EFTA citizens. For all others, tuition fees have been due in the post-high school institutions since 2010. In exceptional cases, the grammar school can also be charged (if the student wants to go to school in a foreign municipality and their own municipality does not cover the costs).

Work and unemployment

Sweden has a comparatively high activity rate . Almost 50% of the total population and 78% of the population aged between 16 and 64 are employed. 48% of all employed persons are women. The employment relationship for employees is regulated by laws and collective agreements. Legally regulated are, for example, normal weekly working hours (40 hours), minimum vacation (5 weeks), protection against dismissal, co-determination at work (in contrast to Germany tied to trade unions) and equality, while income (no statutory minimum wage) and other working conditions are regulated by collective agreements.

On the employers 'side, the social partners are the Association of Swedish Enterprises ( Svenskt näringsliv ) with 48,000 member companies, the Central Employers' Office ( Arbetsgivarverket ) for the state sector, and Sveriges kommuner och regioner for municipalities and provinces. On the employee side , they are opposed to the trade unions , of which the Swedish trade union confederation Landsorganisation i Sverige (LO) is the largest with around 1.5 million members. Other umbrella organizations are the Central Organization of Employees TCO with 1.25 million members and the Central Organization of Swedish Academics SACO with around half a million members. The union density is 68% of the workforce, making it one of the highest in the world (year 2019). Both the Federation of Swedish Enterprises and the trade union umbrella organizations are divided into individual branch organizations.

Unemployment insurance is voluntary and is not part of the state compulsory insurance system. Unemployment insurance is administered by member funds and is usually managed by the trade unions ( the Ghent system ). 75% of employees are insured in a voluntary unemployment fund. Anyone who is not a member, but fulfills the entitlement, is entitled to a basic amount from the so-called alpha fund in the event of unemployment ; which is taxed. There is no need-based ALG (such as Hartz IV). Anyone who has not fulfilled the entitlement or does not get by with the money from the Alpha Fund, has no savings (there are no exemptions), and who has sold a car and house, can also apply for social assistance (depending on needs).

There are five waiting days per "unemployment period" without any entitlement to ALG. The contribution to the A-fund is based on the risk of unemployment, not on income. A cleaning lady pays four times as much as a specialist to the respective A-fund. Since low-wage earners have the highest risk but are least able to pay contributions to the A-fund, only half of all unemployed receive A-kassan. In addition, the money is very often not a living wage. The ALG level is currently (2017) 80% of the last income, but a maximum of 910 crowns (around € 95) per working day, i.e. around € 1,900 per month, and is paid out for a maximum of 300 days (450 days if children under 18 years in the household). Due to the cap, only about one in ten receives the targeted 80%. Unemployment benefit is subject to income tax.

Official unemployment in Sweden has often been higher in recent years than in other European countries (for example in May 2015 it was 8.0% - a further 2.6% were employed in state job creation schemes at that time). In May 2018, the unemployment rate fell to 6.2%.

equality

Sweden has had an active gender equality policy since the 1970s , which found expression in a number of state institutions and laws (Equality Act 1991, which was replaced by the more general Discrimination Act in 2008). At the heart of Swedish equality policy is the national headline target that every individual should gain financial independence through employment . In order to achieve this goal, the compatibility of family and work must be ensured through external care by state institutions. According to the Danish welfare theorist Gøsta Esping-Andersen , Sweden is the country where equality is most advanced.

Gender equality policy has become most prevalent in the public sector and in politics. 44% of the representatives in the Reichstag are women, in the government it is 50%. The situation is similar in the municipalities (43.7% women) and provincial parliaments (49% women). The proportion of women on the supervisory boards of public authorities is also 47%. But the top positions are mostly held by men. This is even more true of the private sector, where the proportion of women in managerial positions and boards of directors is below 10%, among other things. a. due to the greater desire for part-time work among women.

The proportion of employed women between the ages of 20 and 64 is 76%, well above the European average and almost the same as that of men (81%). However, there are clear differences between the sexes. On the one hand, women are mostly to be found in a limited sector of the labor market and in less well-paid occupations, and on the other hand, a quarter of employed women work part-time (but only 7% of men). Although the law requires employers to set up action plans for equal pay for equal work , women's income in Sweden is lower than that of men due to the influences mentioned (including part-time work), although the income differences are much smaller than in most other European countries. According to a study commissioned by the government, the gender-specific wage gap is between one and eight percent and is therefore in the statistically insignificant range.

Family policy is an important aspect of gender equality policy . Legislation (marriage law, divorce law, etc.) and the social security system are the main policy instruments for equality in family life.

Health care and health insurance

All residents (including foreigners, including asylum seekers) in Sweden are entitled to medical care and nursing . For asylum seekers, however, this only applies to medical measures that are necessary immediately and cannot be postponed. The provincial parliaments are responsible for health care and health care and it is financed with direct income taxes and employer contributions. At a doctor's visit has a cost of 22 (at the scheduled visit), 38 (the specialist) and 43 (for acute cases) Euro to be paid and the drugs must be paid up to a maximum of 240 euros per year itself. The practice fees are determined by the respective provincial parliaments and can differ between the various provinces. The fees shown apply to the province of Stockholm . There is an upper limit for the practice fees: In a 12-month period, the patient must pay a maximum of 1200 SEK (approx. 130 €).

Dental costs are partially covered by health insurance. The dentist costs have to be paid by the patient from the age of 20 up to 320 euros. For amounts between 320 euros and 1,600 euros, the health insurance pays half, above 1,600 euros the additional payment is 80%. When calculating the additional payment, however, a reference price list is used, which specifies a price for each dental measure. However, the dentist is not bound by this list and can charge a higher price. No co-payments are made for the difference between the reference price list and the real price, which means that the patient has to pay this in full himself.

All employed persons are entitled to sickness benefits under health insurance as compensation for loss of earnings (there are up to 10 waiting days per year), which is 80% of the salary up to an annual upper limit (currently (2015) around € 2,300). Sick pay for the unemployed is a maximum of 1550 euros. Sick pay is subject to income tax; the amounts shown are gross amounts. Sick pay is taxed at a higher rate than income from employment.

In the event of permanent disability, there may be an entitlement to a disability pension ( sjukersättning ). In order to do this, it is very likely that one must have a permanent disability of at least 25%. The disability pension is 64.7% of the average salary for the last few years. The three years with the highest income in the last 5–8 years (graded according to age) are used. However, the upper limit of the disability pension is currently (2017) around 1900 euros. The disability pension is subject to income tax and is taxed higher than income from gainful employment.

The Swedish health system is often criticized for its long waiting times. Currently (2015) 14% of patients have to wait more than 90 days before they can consult a specialist after a referral. However, the quality of the Swedish healthcare system is very high in international comparisons.

Pension insurance and old-age provision

Sweden had a higher proportion of older populations early on due to low birth rates and high life expectancy. The share of retirees is now 20%.

Due to demographic and economic developments, a new pension system was introduced in Sweden in 1999, which is based on lifetime income and linked to economic and demographic developments. The system is supplemented by a guarantee pension for people with low entitlements from employment. A future state pension is around 50% of the salary / wage, significantly lower for higher incomes and is supplemented by company pensions and additional pensions.

The state pension system is financed by a levy of 18.5% of gross wages. 16% go into a pay-as-you-go system, 2.5% into a funded system. The fee is not variable; if, for example, unemployment or the number of early retirees increases, pensions from the pay-as-you-go system can rise more slowly than incomes or even fall.

Old-age provision in Sweden is a public domain. Since the 1950s there has been no maintenance obligation for children towards their parents. Provincial parishes and municipalities are responsible for care for the elderly. Home care for the elderly and various types of institutional care ( retirement homes , retirement homes, retirement homes and nursing homes ) are operated by them. These benefits are largely financed by income taxes levied by the municipalities and provincial parliaments and by government grants.

Pensions are subject to income tax. They are also taxed at a higher rate than earned income.

State housing policy

In the 1940s, Sweden had one of the lowest housing standards in Europe. Until well into the 1960s, many apartments lacked running water, drains and central heating. In 1965, the so-called million program ( miljonprogrammet ) was therefore decided. According to this housing project, one million high-standard rental apartments were to be built; the rent should not exceed 20% of the net income of the respective household, which put a limit on the construction costs. The goal was achieved by erecting prefabricated panels with standardized prefabricated elements. Private builders could borrow up to 85% and municipal companies up to 100% of the construction costs from the state. Although private contractors were not very interested in the project due to rent restrictions, the goal of building one million homes was achieved in 1975. The apartments were also quickly criticized. Due to the prefabricated construction, very monotonous housing developments emerged. In addition, the million program areas were quickly populated by low wage earners and welfare recipients rather than the “average Swedes” for whom they were originally intended. In addition, the construction of single-family homes increased rapidly in the 1980s. The reasons for this were on the one hand the high inflation, which ensured that loans were repaid “by themselves”, and on the other hand the fact that loan interest was tax deductible, which at a marginal tax rate of 80% ensured low interest costs. The neglect of the construction of further rental apartments had negative consequences for the housing market in the following period. The average waiting time for a rental apartment in Stockholm is currently (2015) 8 years and there were almost 560,000 people in the queue in 2016. This compares to 7,000 brokered apartments per year (2016). It should be borne in mind that Swedes who live in other places are “prophylactically” queuing up so that they have a better chance of an apartment if they move to the capital. The Stockholm municipality tried to counteract this trend with an annual fee of 23 euros.

literature

Josef Schmid: A comparison of welfare states. UTB, Stuttgart 2002, ISBN 3-8252-2220-9 .
Back to the Future. Sweden's welfare state was a model until government spending got out of hand. In: brand eins. 7/2007, pp. 130-137. (The article deals in detail with the history, the crisis and the model function of the "Swedish model" since the 1930s)
Tobias Day: The Swedish Welfare State. GRIN Verlag, 2007 (student thesis)
Sandra Eichinger: Nightmare Sweden ?: Behind the scenes of the dreamland. 2010, ISBN 978-3-8391-4521-0 .

swell

^ Niklas Ekdal: Per Albin Hansson , Albert Bonniers förlag, 2010, ISBN 978-91-0-011988-1

↑ Lennart Schön, En modern svensk ekonomisk historia, tillväxt och omvandling under två sekel, sns förlag, Stockholm, 2007, ISBN 978-91-85355-87-7

↑ ^a ^b Kjell Östberg, Jenny Andersson: Sveriges historia, 1965-2012 , Norstedts, 2013, ISBN 978-91-1-302391-5

↑ Pomperipossa in Monismanien (Swedish)

↑ Pomperipossa in Monismanien (German)

↑ How Astrid sank the government (Swedish)

↑ employer contributions (Swedish)

^ Felix Rath: The social system of Sweden and Austria in comparison. April 27, 2019, accessed April 28, 2019 .

↑ Regulation of the equalization of earnings for parents (Swedish). ( Memento of the original from June 27, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2
↑ Parental Insurance (Swedish). ( Memento of the original from June 11, 2015 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2
^ Information from Sveriges kommuner och landsting on the care fee (Swedish).
↑ ^a ^b Child benefit (Swedish) ( Memento of the original from November 29, 2011 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2
↑ Primary school and further education. on schweden-heute.de
↑ Anders Kjellberg (2020) Kollektivavtalens Tackningsgrad including organizational degrees hos arbetsgivarförbund och fackförbund , Department of Sociology, Lund University. Studies in Social Policy, Industrial Relations, Working Life and Mobility. Research Reports 2020: 1, Appendix 3 (in English) Table A
↑ Anders Kjellberg and Christian Lyhne Ibsen "Attacks on union organizing: Reversible and irreversible changes to the Ghent-systems in Sweden and Denmark" , in Trine Pernille Larsen and Anna Ilsøe (eds.) (2016) Den Danske Model set udefra - comparative perspektiver på dansk arbejdsmarkedsregulering , Copenhagen: Jurist- og Økonomforbundets Forlag, s. 287
↑ Alpha checkout website ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2Template: Dead Link / www.alfakassan.se
↑ unemployment benefit. on: schweden-heute.de
↑ Amount and payout period of the ALG (Swedish)
↑ Sveriges Radio: De flesta for less than 80 percent a-kassa - Nyheter (Ekot). Retrieved May 7, 2017 .
↑ Labor force surveys ( Memento of the original from April 21, 2016 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. on: scb.se (English) @1@ 2Template: Webachiv / IABot / www.scb.se

↑ Equal Rights Act ( jämställdhetslag ) (Swedish), only of historical interest as it is no longer in force.

↑ ^a ^b Discrimination Law ( diskrimineringslag ) (Swedish)

↑ Share of women in local parliaments (Swedish)

^ "Medical care for asylum seekers" (Swedish)

↑ Practice fees in Stockholm.

↑ Co- payment for prescription drugs (Swedish)

↑ Upper limit of the practice fees to be paid (Swedish).

↑ Co- payment for dental treatments (Swedish) ( Memento of the original from February 21, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2
↑ ^a ^b ^c Tax cut for labor income (Swedish)
↑ Information from social insurance on disability pension ( memento of the original from January 15, 2017 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (Swedish). @1@ 2