Although there obviously are clear differences between the Nordic countries, they share some characteristics that distinguish them from other countries. The Nordic model is characterized by the interplay between:

• stable economic management with a strong emphasis on full employment,
• a regulated labour market with strong parties and coordinated wage formation, and
• comprehensive, tax-financed welfare states with redistributive profiles.

Central to understanding the model's functioning is the balance of power between social partners and between the political parties. This balance of power has made it possible to coordinate various policy areas, and to reach compromises.

The model has proven viable through crises, and it has managed to combine efficiency and equality. People in the Nordic countries enjoy good living conditions in a comparative perspective, and the Nordic countries are ranked on top in international comparisons of indicators as employment, gender equality, income inequality, unionization and adaptability.

Since the 1980s Fafo has carried out a number comparative studies of the development of national labor and welfare regimes in Scandinavia and Europe.

In 2014, the project was NordMod 2030 finalized. This project was led by Fafo and included researchers from all the Nordic countries. The purpose of the project was to illustrate how national and international developments have affected the Nordic countries and to highlight challenges the Nordic model are facing in the coming years. Read more about this project on www.nordmod2030.no.