One of the four models of employment and social welfare adopted by countries OECD, as identified in a typography developed by Belgian economist André Sapir. Countries with 'Nordic model' policies include Denmark, Finland, Sweden and the Netherlands. This model is sometimes called the 'social-democrat' model or the 'Nordic corporatist' model.

These countries typically have:

  • high public spending, particularly on social protection.
  • universal welfare.
  • unregulated labour markets.
  • strong trade unions.
  • low wage inequality.

    Nordic model countries are generally successful in combatting poverty while maintaining solid employment amongst its citizens. Unfortunately adopting Nordic policies depends on a highly productive and educated workforce whose jobs cannot easily be moved offshore. They also need to be prepared to accept high taxation and trade-off employment protection. Nordic countries tend to have higher fertility rates than in the other models, thanks to the availability of parenting benefits and low unemployment.

    See also:
    Mediterranean model
    Anglo-Saxon model
    Rhineland model

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