ABSTRACT
Gradually, perceptions of problems in the post-war social order began to emerge in Sweden. The Swedish Conservative party was thus given an opportunity to benefit from ongoing ideological shifts. A political regime change together with the economic crisis facilitated the continued renegotiation of the Swedish post-war collectivist order in the early 1990s. After persistent efforts, it was finally time for the Conservatives to take the lead role in formulating future directions for Swedish socio-economic development, and the new government appointed a commission to reconsider the role of welfare policies in the country. The renegotiation of the post-war collectivist social order also concerned the system of labour market policy. In the beginning of the renegotiation process the Swedish unemployment insurance system consisted of two tiers a higher and a lower one. An efficient labour market, increased competition in the product market and a stable wage setting are factors that allow a strong increase in employment with stable prices.
