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Growth and Equity in Finland

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Author Info
Jantti, Markus
Saari, Juho
Vartiainen, Juhana
Abstract

This paper reviews Finnish economic history during the 'long' twentieth century with a special emphasis on policies for equity and growth. We argue that Finland developed from a poor, vulnerable, and conflict-prone country to a modern economy in part through policies geared at both growth and equity, such as land reform and compulsory schooling. The state participated in economic activity both indirectly and directly in the post-war period, implementing many social policy reforms that facilitated the functioning of the labour market and led to greater equity. Centralised collective bargaining was just one of the many means through which central government intervened in the economy. Both the long-run growth record and the equality of different kinds of economic outcomes are fairly positive. This suggests that facilitating economic growth through such policies that further more equitable outcomes may at least in the case of Finland have met with some success.

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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number DP2006/06.

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Length: 48 pages
Date of creation: 2006
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Handle: RePEc:unu:wpaper:dp2006-06

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Related research
Keywords: economic growth; income distribution; labour unions; schooling; public policy;

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