Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94846
Authors: 
Davis, Steven J.
Henrekson, Magnus
Year of Publication: 
1997
Series/Report no.: 
IUI Working Paper 482
Abstract: 
What factors determine national differences in the size and industry distribution of employment? This study stresses the role of business taxation, employment security laws, credit market policies, wage-setting institutions and the size of the public sector. We characterize these aspects of the economic policy environment in Sweden prior to 1990-91 and compare them to the situation in other European countries and the United States. Our characterization and international comparisons show that Swedish policies strongly disfavored less capital-intensive firms, smaller firms, entry by new firms, and individual and family ownership of business. We also compile evidence that these policies affect outcomes. Taking the U.S. industrial distribution as a benchmark that reflects a comparatively neutral set of policies and institutions, Sweden's employment distribution in the mid-1980s is sharply tilted away from low-wage industries and industries with greater employment shares for smaller firms and establishments. The Swedish rate of self-employment in the 1970s and 1980s is the lowest among all OECD countries. Compared to other European countries, Sweden has an unusually high share of employment in large firms.
Subjects: 
Business Taxation
Industrial Policy
Industry Structure
Size Distribution
JEL: 
H30
J21
L52
Document Type: 
Working Paper

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