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Link to originalmost cleverly realized in Sweden’s postwar labor-market regime, anchored by the Rehn-Meidner model. Its starting point was the “solidarity wage,” which compressed inequality by raising wages at the bottom of the economy and capping them at the top. Low-productivity firms, unable to survive without cheap labor, were gradually displaced. High-productivity firms, now paying less in their highest salaries, could expand more easily. The most efficient firms grew; the least efficient contracted.