Regional inequalities in Sweden. A historical analysis

Kerstin Enflo

This publication puts the increasing regional differences in the last 30 years in a historical perspective. For this purpose, new data series are presented of GDP per capita for Swedish counties between 1860 and 2010; it has previously been impossible to make these kinds of comparisons. The driving forces behind the historical patterns are analysed and the current situation is discussed in light of these.

sns_analys_nr_33.pdf 494.1 KB PDF

THE REGIONAL GAPS in Sweden have been increasing since the 1980’s. This trend entails political challenges. Large regional differences threaten the cohesion in society and might decrease the legitimacy of the municipal redistribution system. This publication puts the increasing regional differences in the last 30 years in a historical perspective. For this purpose, new data series are presented of GDP per capita for Swedish counties between 1860 and 2010; it has previously been impossible to make these kinds of comparisons. The driving forces behind the historical patterns are analysed and the current situation is discussed in light of these.

THINGS WERE NOT BETTER IN THE PAST. The regional differences in Sweden were considerably larger in 1860 than what they are today. The mobility between counties, as concerns the ranking of GDP per capita, has been high. The driving forces for this trend have changed over time. The increasing differences that have emerged lately constitute a sharp break in the trend.

ACTIVE REGIONAL POLITICS DECREASED THE GAPS IN THE POST-WAR PERIOD. In the years 1940–1980, the GDP differences fell to historically low levels, among other things due to solidary wage policy, industry policy and allowances for moving expenses. This comes at the price of increased depopulation in certain parts of the country and sharp criticism from the citizens.

STRONG POPULATION CONCENTRATION. Since the 1980’s, the trend in Sweden has led to increased regional gaps both as concerns population density and GDP per capita, a combination of trends that is historically unique. One might possibly talk about a new kind of regional outsidership.

AUTHOR Kerstin Enflo, Associate Professor (Docent) of Economic History, Lund University. E-mail: kerstin.enflo@ekh.lu.se.