A German think
GDP) and artificially understates unemploy-
lower rate of unemployment for ages 16-24,
ment.18
but the difference is not large and Denmark
tank estimates
and Iceland actually have better numbers than
Proponents of the Nordic model argue that
that nearly
America. Statistics for long-term unemploy-
the United States does not have an advantage
one-third of
ment, however, are not flattering for Nordic
in every measure of prosperity and the quality
nations. More than 18 percent of the unem-
of life, and they often cite leisure time as an
Scandinavian
ployed in Nordic nations have been out of
important variable. It is certainly true that
workers are
work for more than 12 months. In the United
Americans spend more time on the job. As
States, by contrast, fewer than 12 percent of
seen in Figure 7, Americans spend more time
employed by the
the unemployed have been jobless that long.15
each year working than the residents of every
state. In the
Nordic nation. According to OECD data, only
Another noteworthy feature of labor mar-
United States
people in Finland and Iceland work similar
kets in Nordic nations is the role of govern-
hours to Americans, while Norwegians work
ment as a major employer. As noted by a
by contrast,
400 fewer hours each year.19 The Nordic
German think tank, "On average, the share of
government
state employment in total dependent employ-
Statistical Yearbook has weekly labor supply
workers account
ment across Scandinavia is 32.7%, compared
estimates that show a similar pattern, with
to only 18.5% in the non-Scandinavian coun-
Americans working 41 hours per week while
for slightly more
tries of the EU-15."16 In the United States, gov-
residents of Nordic nations work between 35
than 15 percent of
and 38 hours each week.20
ernment workers account for slightly more
than 15 percent of the workforce.17 Moreover,
It is unclear, though, whether working fewer
the workforce.
the same researchers say that some Nordic
hours than Americans translates into more
nations are prone to re-characterize welfare
leisure time for people in Nordic nations. The
beneficiaries as government employees, a prac-
workweek is composed not only of hours in
tice that artificially overstates economic out-
paid employment, but also of time spent in
put (since government salaries are added to
household production (cooking, cleaning,
Figure 7
Average Annual Hours Worked
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Denmark
Finland
Iceland
Norway
Sweden
United States
Source: Organization for Economic Cooperation and Development Country Statistical Profiles.
8