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
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.
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.