Advanced Search
MyIDEAS: Login

Finnish unemployment: observations and conjectures

Contents:

Author Info

  • Jaakko Kiander

    (Government Institute for Economic Research)

  • Jaakko Pehkonen

    (School of Business and Economics, University of Jyväskylä)

Registered author(s):

    Abstract

    In this study we analyze the factors behind the Finnish unemployment shock of the 1990s. The analysis is based on labour demand, wage-setting and current account equations that form a structural labour market model. The results of this model are compared to those obtained from a reduced form unemployment equation. We find that the both approaches yield relatively similar results. The main factor causing the dramatic increase in Finnish unemployment in the early 1990s seem to have been the real interest rate shocks of the years 1989–92. In addition to interest rates, there are other explaining variables although they are of minor importance. They include domestic supply side factors such as increased tax wedge and replacement ratio, and variables related to the economy’s external constraint. These are the terms of trade and the economy’s foreign indebtedness.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/f1999_2d.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 12 (1999)
    Issue (Month): 2 (Autumn)
    Pages: 94-108

    as in new window
    Handle: RePEc:fep:journl:v:20:y:1999:i:1:p:94-108

    Contact details of provider:
    Web page: http://www.taloustieteellinenyhdistys.fi
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Jennifer Hunt, 1996. "Has Work-Sharing Worked in Germany?," NBER Working Papers 5724, National Bureau of Economic Research, Inc.
    2. Seppo Honkapohja & Erkki Koskela & Jouko Paunio, 1996. "The depression of the 1990s in Finland : an analytic view," Finnish Economic Papers, Finnish Economic Association, vol. 9(1), pages 37-54, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Karanassou, Marika & Sala, Hector & Salvador, Pablo F., 2007. "Capital Accumulation and Unemployment: New Insights on the Nordic Experience," IZA Discussion Papers 3066, Institute for the Study of Labor (IZA).
    2. Petri Böckerman & Markus Jäntti, 2005. "Is Variation in Hours of Work Driven by Supply or Demand? Evidence from Finnish Manufacturing Industries," Labor and Demography 0505012, EconWPA.
    3. Erkki Koskela & Roope Uusitalo, 2003. "The Un-Intended Convergence: How the Finnish Unemployment Reached the European Level," CESifo Working Paper Series 878, CESifo Group Munich.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:fep:journl:v:20:y:1999:i:1:p:94-108. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Editorial Secretary).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.