Pursuits

Here's How the Refugee Crisis Threatens Swedish Social Model

  • Taxes could rise to cover costs from record refugee inflow
  • Labor market, housing regulations come under the loupe

Refugees attend a Swedish language class in Vattendroppen, Sweden.

Photographer: David Ramos/Getty Images
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In a Sweden grappling with an unprecedented inflow of refugees, many unthinkable things are becoming thinkable.

The government is now facing pressure to interfere in the sacrosanct labor market -- where pay is traditionally set by employers and unions. The argument goes that Sweden needs a lower minimum wage to help create the thousands upon thousands of jobs needed to absorb the record inflow of people seeking refuge.