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Revisiting the Nordic Labour Market Model in the Age of Artificial Intelligence AI Diffusion: Insider-Outsider Asymmetries in Sweden and Finland

  • Journal of the Scandinavian Society of Korea
  • Abbr : JSSK
  • 2026, (37), pp.1~44
  • Publisher : The Scandinavian Society of Korea
  • Research Area : Social Science > Area Studies > North Europe(Scandinavian)
  • Received : June 4, 2026
  • Accepted : June 27, 2026
  • Published : June 30, 2026

Shin, Young-Kyu 1

1한국보건사회연구원

Accredited

ABSTRACT

This study examines how the Nordic labour market model’s capacity to protect outsiders has been reconfigured under the spread of artificial intelligence (AI), focusing on Sweden and Finland. Although the Nordic model has traditionally been regarded as effective in containing labour market dualisation through strong trade unions, extensive collective bargaining coverage, active labour market policies, and generous unemployment protection, AI-driven reductions in recruitment and entry-level jobs may leave young labour market entrants and workers with limited employment histories inadequately protected. The analysis demonstrates that, despite following different reform trajectories, both countries have developed increasingly insider-oriented protection structures. Decentralised collective bargaining has widened the representational gap between incumbent workers and new jobseekers, while retraining support has increasingly favoured workers with established employment histories. Stricter eligibility conditions and lower unemployment benefits have also reinforced disparities based on employment history and unemployment fund membership. These findings suggest that the Nordic model has not simply weakened; rather, access to protective resources has been reconfigured in ways that favour insiders. As AI further constrains pathways into the labour market, these institutional asymmetries may deepen.

Citation status

* References for papers published after 2025 are currently being built.

This paper was written with support from the National Research Foundation of Korea.