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A guide to the Finnish labour market

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  • Timo Tyrväinen

    (Bank of Finland)

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    Abstract

    This article evaluates the fundamental characteristics of the Finnish labour market. In fact, if one wishes to verify the favourable effects of increasing »corporatism» in an empirical context, Finland should be an obvious candidate. It is hard to find an industrialized economy where the salient features of the labour markets have challged so much in such a short space of time. In this article a bargaining approach incorporating the key role ofunions in wage setting is applied. All analysis is made of basic trends in those factors which theoretical considerations imply as being relevant. The role of incomes policy is also evaluated. The explosion in the »wedge» between product wages and aftertax consumption wages appears to have contributed to employment losses in the latter half of the 1970s. It cannot, however, be blamed for the sluggish demand for labour in most of the 1980s.

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    Bibliographic Info

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

    Volume (Year): 2 (1989)
    Issue (Month): 2 (Autumn)
    Pages: 160-175

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    Handle: RePEc:fep:journl:v:2:y:1989:i:2:p:160-175

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    Web page: http://www.taloustieteellinenyhdistys.fi
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    1. Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 97(385), pages 121-39, March.
    2. Calmfors, L. & Forslund, A., 1989. "Wage Setting In Sweden," Papers, Stockholm - International Economic Studies 430, Stockholm - International Economic Studies.
    3. Andrew Oswald, 1984. "Efficient Contracts are on the Labour Demand Curve: Theory and Facts," Working Papers 555, Princeton University, Department of Economics, Industrial Relations Section..
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