The Swedish Lesson: Welfare States Create Moral Hazard

"We should remember that generous welfare states pose a moral hazard", Bullfax argues. "Gatekeeping functions have been introduced, mainly for sick-leave claims, to limit over-utilization and outright cheating.Economist Martin Ljunge [IFN] suggests that the reforms may need to be quite far-reaching to reverse the long-term effect that the welfare state has had."