Planning for a rapidly changing environment in SAS

The author describes how Scandinavian Airlines achieved a turnaround from unprofitability and loss of market share. The creation and development of a corporate culture revitalized personnel and initiated a new management role, business-oriented rather than administrative. Punctuality became a specific goal and won for SAS the reputation of being Europe's most punctual airline. The change process is likely to continue into the future and the new internal management systems will change to meet these needs.     

Internal Migration in Sweden: The Effects of Mobility Grants and Regional Labour Market Conditions

The main purpose of this study is to investigate whether variations in mobility grants have affected internal migration in Sweden. The paper also contains an exploration of how changing labour market conditions influence the migratory behaviour of the unemployed in comparison with other individuals. The results indicate that total migration flows respond to changes in labour market conditions in accordance with predictions from economic theory. This finding seems mainly to stem from the migratory behaviour of the unemployed. Furthermore, non-matching migration subsidies at the levels employed are not found to be migration enhancing.     

Three Routes to Pension Reform: Politics and Institutions in Reforming Pensions in Denmark,Finland and Sweden

By analysing pension reforms in three Nordic countries – Denmark, Finland and Sweden – that apply different institutional solutions in their old‐age security programmes, this article argues that the political processes that shaped the country‐specific pension set‐ups in the 1950s and 1960s had important ramifications for subsequent reform possibilities. A high degree of inertia exists not only in the institutions themselves but also in the political reform options and the ways in which pensions were reformed. The analysis shows that the ‘new politics’ was not new in any of the three countries. Furthermore, given the differences in the three cases, the analysis questions the nature of pension reform. The Swedish reform in the late 1990s was a ‘big bang’ that eliminated the old and changed everything; the Finns built on piecemeal reforms of conversion that gradually changed the whole system; and, while the Danish story appears to be one of stability and status quo, the drift of Danish policy ultimately changed the basic characteristics of the system. Although all three countries have more or less thoroughly reformed their pensions, the reform processes have differed according to both historical legacies and institutional frameworks.     

On Exact Simulation of Markov Random Fields Using Coupling from the Past

A general framework for exact simulation of Markov random fields using the Propp–Wilson coupling from the past approach is proposed. Our emphasis is on situations lacking the monotonicity properties that have been exploited in previous studies. A critical aspect is the convergence time of the algorithm; this we study both theoretically and experimentically. Our main theoretical result in this direction says, roughly, that if interactions are sufficiently weak, then the expected running time of a carefully designed implementation is O ( N log N ), where N is the number of interacting components of the system. Computer experiments are carried out for random q -colourings and for the Widom–Rowlinson lattice gas model.     

Health-related disabilities and matching of spouses: Analysis of Swedish population data

Recent research concerning the incidence of reported work-limiting disabilities in the married population indicates a degree of interdependence between spouses' disabilities. This pattern is consistent with several hypotheses. Spouses tend to share many lifestyle traits that might lead to common health outcomes. Alternatively, their joint reports might reflect a shared preference for income benefits or workplace accommodations available to disabled individuals. Another possibility is that disabled individuals tend to be matched in the process of marital formation. This paper investigates the latter hypothesis. Taking advantage of a unique data set from the Swedish population, we select a sample of recently married couples and trace them back in time to their single years. Our analysis indicates nonrandom matching on the basis of disability status. After controlling for observed traits such as age and education, we find a residual correlation between future spouses that is positive and strongly significant. The magnitude of the correlation is within the range of residual correlations obtained from other studies that address marital matching in the contexts of education and earnings. The authors wish to thank anonymous referees and the editors of this journal for helpful comments and prompt reviews. Responsible editor: Christian Dustmann.     

Perspectives on determinants of social welfare: introduction

In this commentary we discuss and elaborate on a number of topics that have been raised in the articles in this issue. The first topic treated is causality. All scientists are aware of the difficulties of making causal inferences in non‐experimental settings, and in many cases arguments are forwarded that support the causal interpretation of the reported relationships. Questions of bi‐directional causality, nonlinear relationships and the importance of omitted variables are discussed, as is the supporting evidence that in some cases comes from experimental studies. The second topic is the level of analysis employed in the empirical analyses and the difficulty of interpreting findings at a different level of aggregation than the level applied in these analyses. In this context, the importance of applying a person‐orientation is pointed out to ensure that the findings are interpretable at the level of the single individual. Even in individual‐level analyses, this can be problematic if one relies on group statistics produced within a variable‐oriented framework. The third topic concerns how to handle interactions and nonlinear relationships. The fourth topic concerns the importance of improving measurements so that a good correspondence is achieved between them and the theoretical conceptualisations. The fifth and last topic is concerned with the argument that different ways of investigating the generalisability of the results to different populations should be tried.     

Efficiency in Marriage

Economists usually assume that bargaining in marriage leads to efficient outcomes. The most convincing rationale for this assumption is the belief that efficient allocations are likely to emerge from repeated interactions in stationary environments, and that marriage provides such an environment. This paper argues that when a current decision affects future bargaining power, inefficient outcomes are plausible. If the spouses could make binding commitments–in effect, commitments to refrain from exploiting the future bargaining advantage–then the inefficiency would disappear. But spouses seldom can make binding commitments regarding allocation within marriage.To investigate the efficiency of bargaining within marriage when choices affect future bargaining power, we consider the location decisions of two-earner couples. Initial location decisions are transparent and analytically tractable examples of choices likely to affect future bargaining power, but the logic of our analysis applies to many other decisions. For example, decisions about education, fertility, and labor force participation are also potential sources of inefficiency.     

Perspectives on determinants of social welfare: commentary

In this commentary we discuss and elaborate on a number of topics that have been raised in the articles in this issue. The first topic treated is causality. All scientists are aware of the difficulties of making causal inferences in non-experimental settings, and in many cases arguments are forwarded that support the causal interpretation of the reported relationships. Questions of bi-directional causality, nonlinear relationships and the importance of omitted variables are discussed, as is the supporting evidence that in some cases comes from experimental studies. The second topic is the level of analysis employed in the empirical analyses and the difficulty of interpreting findings at a different level of aggregation than the level applied in these analyses. In this context, the importance of applying a person-orientation is pointed out to ensure that the findings are interpretable at the level of the single individual. Even in individual-level analyses, this can be problematic if one relies on group statistics produced within a variable-oriented framework. The third topic concerns how to handle interactions and nonlinear relationships. The fourth topic concerns the importance of improving measurements so that a good correspondence is achieved between them and the theoretical conceptualisations. The fifth and last topic is concerned with the argument that different ways of investigating the generalisability of the results to different populations should be tried.