New report looks at how economic-political experimentation can lead to better Nordic policies

04.05.26 | News
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What happens to employment among young people if they can pay less tax on their wage income? And is it worth investing in having children start preschool a year earlier? These types of economic-political experiments have been pursued in some of the Nordic countries to understand whether political initiatives have the desired effect in reality. The latest Nordic Economic Policy Review has now been published, and this year it has a particular focus on these kinds of experiments.

The Nordic Economic Policy Review 2026 shows how randomised experiments are being used in more and more policy areas – from taxation and the labour market to education and initiatives for children and young people. The background to this is the growing need to know what actually works in practice.

Nordic co-operation is based on shared values – trust, openness, and evidence-based decision-making. Although this gives us invaluable direction, sometimes more is needed if policy is to deliver concrete outcomes. Randomised experiments help politicians distinguish between what they think will work and what actually works.

Karen Ellemann, Secretary General of the Nordic Council of Ministers.

Unique conditions

The report provides examples of how several Nordic countries have used randomised experiments, including Finland which has tested having some children start preschool a year earlier, and Norway which is currently conducting a tax policy experiment whereby some young people pay lower taxes on their salary income.

The Nordic countries have unique conditions for experimentation – strong institutions, high data quality, and broad acceptance of evidence-based policy. At the same time, experimentation often requires special legislation, ethical considerations, and political courage.

Roope Uusitalo, editor of Nordic Economic Policy Review 2026

The articles in the Nordic Economic Policy Review 2026 outline how the experiments are designed, implemented, and used in practice. They cover a range of policy areas – taxation, education, the labour market, and initiatives for children – and illustrate several forms of learning. Together, the articles demonstrate that experimentation is not a technical exercise, but a practical tool for policy development.

The report has been compiled by Nordregio on behalf of the Nordic Council of Ministers and will be launched on 6 May 2026.