Here you pay in advance via the tax system. The same goes for primary and secondary education. All who earn money have once upon a time used the pre-schools and schools, and in our society you pay for it through the tax some years later. Neoclassical economists use to argue that the high taxations in the Nordic countries must lead to high unemployment, low productivity, low rates of investments and too little incentives to work and innovate. In the 80s there was full employment despite high taxes and an extensive social security system.
People still prefer work to unemployment.
Sweden could maintain full employment until 1990s, but now the open unemployment is higher than in the US, although the criteria of the statistics differ. The Nordic model worked well till the 90'ies economic depression, but it may have gotten into trouble in some of the countries now. On the other hand, one could argue that thanks to this model the recession in the beginning of the 90'ies became moderated in a very favorable way, compared for instance to the development in the United Kingdom. Productivity is relatively high in Norden. Social security does not lower productivity.