News

In a brand new book Johan Wennström, IFN, uncovers how politicians from both left and right undermined the professional pride and independence of Swedish schoolteachers for decades. According to the author, this has contributed to both the decline of the teaching profession in Sweden and the drop in knowledge among Swedish students. At a seminar in Stockholm, the book was discussed by Anna Ekström, Director General of the National Agency for Education, and Jonas Vlachos, an educational researcher affiliated with IFN and Stockholm University.

Political power around the world is mostly in the hands of white middle-aged men. This fact might point to the existence of such a glass ceiling for other groups. In a new study Olle Folke and Johanna Rickne, IFN, research the existence of a glass ceiling. The researchers are studying whether a limit exists for women, and/or for the first and second generation of immigrants to Swedish municipalities. They have found a glass ceiling for women and a "sticky floor" for the current immigrant groups.

In the newly published book Sweden and the Revival of the Capitalist Welfare State, Andreas Bergh, IFN and Lund’s University, explains how a country can successfully combine increasing prosperity with a relatively egalitarian distribution. Unlike the French economist Thomas Piketty, Bergh shows that "the successful recipe of Sweden is not to tax capital highly, but rather to provide efficient, capitalist institutions that allow a redistributive welfare state".

Today the Swedish education system is disputed and the pro-choice/voucher-system in particular – allowing parents and students the choice between any public or private school. In National Review Online Tino Sanandaji, IFN, argues that Sweden has an education crises, but it was not caused by school choice. “There is no doubt that the voucher reform was poorly implemented, but this doesn’t change the fact that the reform worked.” Also Gabriel Heller Sahlgren, affiliated to IFN, is debating the Swedish voucher-system in British media.

A number of researchers from IFN participated in seminars and debates during the the Almedal week. Several of them commented on a range of issues in television: Andreas Bergh was featured in SVT's morning show and discussed the French economist Thomas Pikettys theories. Magnus Henrekson "grilled" Anders Wallner (MP) in SVT and discussed taxes in EFN television. Johanna Rickne gave an economist's view of Fredrik Reinfeldt's televized speech.

The Swedish self-image as a future knowledge-driven economy is quite feasible to implement. Though, it requires a number of changes, writes Magnus Henrekson, IFN, in the book Position Sverige – Om innovation, hållbarhet och arbetsmarknad, presented in Almedalen last Tuesday (July 1). He explained that Sweden ranks high in terms of innovations and patents. But we are not good at the next step: Through entrepreneurship and by building businesses, translating patents and innovations into high-growth companies. This requires a series of reforms.

A report written by Jannis Angelis and Henrik Jordahl, IFN was presented by SNS at a well-attended seminar during the first day of a week of policymaking and debate in Almedalen. The report – Att styra och leda äldreomsorg (Leadership and management in geriatric care) is part of the joint IFN and SNS research project called From welfare state to a welfare society. "Larger [private] firms stand out," explained Henrik Jordahl in Almedalen. These companies are paramount in regards to controlling and managing the production. But, he said, the range is large between and also within all modes of operation: local government, non-profit and for-profit businesses.

Gabriel H. Sahlgren, Director of Research at the Centre for Market Reform of Education and Affiliated to IFN, is editor and co-author of Tests worth teaching to: incentivising quality in qualifications and accountability. Diversity in qualifications and examinations (carried out by examination boards) is a unique feature of the UK.

Entrepreneurship was the theme of a seminar that IFN arranged Tuesday. Besides Magnus Henrekson and Joacim Tåg, IFN, Lena Apler, Chairman Collector, was part of the panel. In an introductory presentation explained Magnus Henrekson that "entrepreneurship is not about small business, but the emergence of new major corporations". Four-fifths of the self-employed have not any employees and small ambitions to grow. Henrekson commented on the economist in vogue Thomas Piketty's theories: "Piketty agree that entrepreneurs are innovative and create value, but believes they are only a few." This does not correspond with reality, he explained.

I have come to find out what others are working on and to get feedback on my own work, said Frank A. Wolak, Stanford University when asked about IFN's annual international research conference held in Vaxholm. On an annual basis a group of international scholars are invited to join researchers from IFN to discuss their own and others' research. The theme of the conference this year (June 12-13) was "The Performance of Electricity Markets." Researchers from eight countries participated in the exchange of knowledge and ideas.

"Elections in 2014 – advice by economists" is the theme of a new issue of Ekonomisk Debatt. Seven economists write about a number of hot topics, for example low teacher salaries that could be an explanation for the poor results in Swedish schools. They also give advice in regards to the importance of geographical clusters for business, the need for an ambitious climate policy and a new tax reform. The latter article was written by Åsa Hansson, IFN. Andreas Bergh, IFN, writes on "Difficulties for foreign-born in the Swedish labor market – solutions suggested by the political parties are inadequate."

Maps of segregation were generated by the Liberal Party (Folkpartiet) until 2006, when there were 156 Swedish so called exclusion areas, i.e., neighborhoods characterized by profound socio-economic problems. Now, IFN-researcher Tino Sanandaji, in a report for Den Nya Välfärden, has replicated the FP method and updated the map for 2012. It turns out that the number of exclusion areas has increased to 186. Though, Tino Sanandaji explains that this increase has been slower during the Alliansen government compared to Görans Persson's (Social Democrats) last term in office. Moreover, there are some encouraging signs, including that the number of families receiving income support has dropped slightly in the exclusion areas.

The Swedish government should invest in small and risky projects only in early phases, explained Roger Svensson, IFN , when he presented a report, “ Government funding in small businesses”, published by  Timbro. He explained that Fourier Transform and InlandsInnovation, government VC funds, should be terminated as these funds invest in final stages, something that the market can bring about without tax money. Instead, Almi’s loans for innovations should be expanded, along with Almi Invest venture capital. As these two are the only funds financing exclusively small and risky projects in early stages, writes Roger Svensson in the report.

"Tax cuts affecting entrepreneurs have partially been aimed in the wrong direction," said Tino Sanandaji , IFN , when he and Magnus Henrekson, IFN, unveiled an ESO study – Entrepreneurship conditions - a new report on the Swedish equity taxation (ESO, the Expert Group for Public Economics). "With high taxes and a heavy regulatory burden more livelihood enterprises have been created [but less entrepreneurial firms with growth potential]" explained Magnus Henrekson during the debate that followed the presentation. In the report, the authors suggest, among other things, that stock option programs should be introduced allowing entrepreneurs and key employees to be rewarded for their risk taking.

For the 16th time The Swedish Network for European Studies in Economics (SNEE) is arranging a four-day research conference in Mölle, Skåne, on May 20 to 23. The initiator and driving force of this endeavor is Professor Lars Oxelheim, IFN and Lund University. The conference that opened with a speech by the Minister for Financial Markets Peter Norman, is by many described as a Nordic mini- Davos meeting. A number of researchers from IFN is presenting studies and/or are commenting on other researchers work.

Roger Svensson, IFN, is the author of a study "Successful support for R & D, innovation and entrepreneurship," which was presented by the think tank Fores on Wednesday. Roger Svensson argues that many forms of support to R & D and innovation is not working well, and that several actions are poorly evaluated. He reasons that the rules for government venture capital funds should be amended and that state funds such as Fourier transform and Inlandsinnovation should be phased out.

Policy makers should recognize that self-employment and innovative entrepreneurship are not synonymous; and that policies which encourage self-employment not necessarily promote entrepreneurship. This is the message in a brand new book SuperEntrepreneurs by Tino and Nima Sanandaji. “This book is also topical in light of the debate about increasing wealth inequality in industrialized countries” writes Professor Magnus Henrekson, IFN, in a foreword: “This report clearly demonstrates that SuperEntrepreneurs as a group has been exceptionally productive from the point of view of the rest of society."

Maryann Feldman, Heninger Distinguished Professor in the Department of Public Policy at the University of North Carolina, was the 2013 recipient of the Global Award for Entrepreneurship Research. Now here prize lecture is published in Small Business Economics focusing on her work on the role of entrepreneurial activity in the formation of regional industry clusters.

There are no neutral compensation models. Each offers incentives and thus it is important to determine what you want to achieve, explained researcher Peter Lindgren, author of the report Reimbursement in health care - models, effects and recommendations, at a workshop on Wednesday. He asserted that different models suits different categories of care. The report is included in the IFN and SNS joint project Från välfärdsstat till välfärdssamhälle (From welfare state to a welfare society).

The most downloaded article in the scientific journal Economics Letters is written by Martin Ljunge, IFN. More than 1,500 people have so far downloaded the article published in the first issue of 2014. Ljunge writes about how democracy fosters trust. He has studied trust among second-generation immigrants and correlates it with democracy in the father's country of birth. He notes that democratic institutions have a positive effect on cultural norms, which are important to promote both prosperity and health.