This is the actual title of Why do Scandinavians Work? which poses the following puzzle –
Recent debates have suggested that taxation is very detrimental to labour force participation and employment. However, some countries – notably the Scandinavian – stand out as contradictions to this view since they have managed to sustain high labour force participation rates despite high tax rates and a generous social safety net.' The paper's long, and the topic complex – one we’ll likely come back to again. The broad claim, however, is that the non-pecuniary aspects of the social safety net can be used to counter-balance the disincentives to work.
