In their justification, the jury points out that Moene’s research is innovative, pioneering and radical. They emphasize that his large professional production is based on a foundation of technical quality and methodological demands, and his contributions to the public debate are interesting and relevant. The jury also stresses Moene’s ability to pass on knowledge to a broad audience through different channels and an all-round accessible language that displays the academic values in a good way.
In Moene’s speech, he raised the importance of being a part of a good academic environment. According to him, it is easy to be enthusiastic and committed when you are a member of a generous and encouraging academic environment like that of ESOP and the Department of Economics.
The Nordic model
Next, Moene held a presentation concerning the sustainability of the Nordic welfare model. He pointed out that the Nordic model and the generous welfare state imply generous institutions of free trade, where the gains are shared among the population as a whole. This means that the country can be more exposed to international risks, because the risk also is shared among many. There is a link between how exposed a country is to trade and the differences in wages. The countries that are most open to international trade also have the most compressed wage structures, and the countries with the most compressed wage structures are also the countries that are most open to international trade.
The tyranny of small decisions
Important aspects of the welfare distribution regime is not created through design, but rather via a gradual evolution. Social reforms and changes lay the foundation for new reforms. These cumulative forces can work both ways. The majority can be exposed to “the tyranny of small decisions”, where small and well intentioned decisions gradually lead to a deterioration of the public supply, even though that was not the intended consequence.
Future challenges
Finally, Moene pointed out a future challenge for the Nordic model. The service sector has increased massively over the last years, much at the expense of the production of goods. At the same time, the possibility of productivity growth and technological progress is larger in manufacturing, which means that the average productivity growth in the service sector is lower. Because wage increases in all sectors have to follow the general wage increase, this means that the costs of the service sector will increase compared to the costs of manufacturing. These costs will be particularly high in welfare states, and this is a challenge for the Nordic model. Compressed wage structures, high employment and the large collective organizations may again be part of the solution.
Text and photo: Siril Kvam, ESOP