Four out of five individuals receive less than 80 percent of their salary in unemployment benefits because they make more money than the upper limit for payouts, according to a study by Uppsala University researcher Karl-Oskar Lindgren.
Furthermore, an equal or greater number of individuals exceeded the systems income limits in the early 1980s, the study suggests.
"No one kicked up a fuss about it, which is probably related to unemployment being much lower then," he said.
This means a larger proportion of the workers insured by the system make more than the upper limit for unemployment benefit payouts under the Swedish system than in most other countries.
A more generous system would also benefit low-income groups, as well as people's willingness to pay higher premiums, resulting in more members and more money for payouts, according to the study's conclusions.
Lindgren is due to present his findings at a seminar organised by Akademikerans a-kassa, the unemployment fund for university graduates in Sweden.