In this paper we will undertake a long-term analysis of the evolution of the
Swedish welfare state, seeking to explain that evolution through the use of a
systemic approach. That is to say, our approach will consider the interrelations
between economic growth (EG), the socio-political institutional framework
(IF), and the welfare state (WS) − understood as a set of institutions
embracing the labour market and its regulation, the tax system, and the socalled social wage − in order to find the main variables that elucidate its
evolution. We will show that the expansive phase of the Swedish welfare state
can be explained by the symbiotic relationships developed in the WS-EG-IF
interaction; whereas the period of welfare state retrenchment is one result of
changes operating within the socio-political (IF) and economic (EG) bases.
