Disability and employment: lessons from natural policy experiments.

tection legislation, active labour market policies, universal rights to income maintenance, relatively generous benefits and provision of medical and vocational rehabilitation? The scanty research findings so far suggest that the answer is affirmative. This evidence suggests that the Nordic welfare regime might be sustainable also in the longer run as long as it is able to provide ‘full employment’ and high employment among disadvantaged groups. Up to the financial crisis, Nordic countries did quite well in this respect in comparison with other nations; countries belonging to the Nordic regime were effective as well as egalitarian. Thus, the alleged trade-off between these two virtues appear to be somewhat exaggerated. It might be that Nordic social institutions create small income inequalities as well as high employment and economic growth by including also disadvantaged groups in the work force. This broadens the tax base and allows the state to pursue egalitarian goals through comprehensive welfare policies. Welfare policies may be seen as a social investment insofar as it improves living conditions, health and work opportunities for most population groups, including the disadvantaged, whereas an inclusive society is a precondition for economic activity, prosperity, equality and the viability of a universal, generous and service-heavy welfare state.