Free education gives an "oversupply" of educated workers. Plus high marginal tax incentivizes payment by other mean than salary (time off, short work hours ...).

Sweden of the Scandinavian countries is the odd one out. The serious hardworking big brother. They always had big companies (IKEA, Volvo, Ericsson) compared to Denmark and Norway. Far stronger engineering tradition. Self-sufficient with nuclear plants, weapons, automobiles and so on under the cold war. Far more open to immigration. Bigger difference between rich and poor. Better and deeper financial markets. More hierarchical.