THE CHOICES FOR SCANDINAVIAN SOCIAL-DEMOCRACY IN COMPARATIVE PERSPECTIVE

Scandinavian social democracy represents one of the most systematic at tempts to shape economic institutions and policies in pursuit of equal ity and full employment. Increasingly, however; these goals have elude d governments, and their institutional supports have eroded. This pape r seeks to understand this shift through a comparative analysis that p laces particular emphasis on the interaction between macroeconomic pol icies and wage-bargaining institutions. It is argued that the nature o f this interaction, and the associated economic effects, have been cha nged by new technology, capital market integration, and service-sector expansion. As a result, centralized wage-bargaining institutions and accommodating macroeconomic policy regimes have been undermined and so cial democracy increasingly faces a choice between the promotion of eq uality and employment for all.