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Technology Effects on Wages in Finnish Manufacturing

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  • Seppo Laaksonen
  • Jari Vainiomäki

Abstract

In this paper we study the effect of technology on establishment‐level wages using a classification of manufacturing industries based on four technology levels. The technology wage premiums are estimated separately for non‐manual and manual workers using wage equations with available control variables for plant and workforce characteristics (human capital) over the time period 1974–93. The results do not show a straightforward increasing relationship between a plant’s average wages and its technology at higher technology levels. However, establishments with the lowest technology level paid the lowest wages during the whole period. We also find that the relative non‐manual to manual wage ratio increased over the time period in the highest technology levels. These findings are consistent with technology wage premiums and skill‐biased technological change found in studies for other countries

Suggested Citation

  • Seppo Laaksonen & Jari Vainiomäki, 2001. "Technology Effects on Wages in Finnish Manufacturing," LABOUR, CEIS, vol. 15(2), pages 295-316, June.
    • Handle: RePEc:bla:labour:v:15:y:2001:i:2:p:295-316
    DOI: 10.1111/1467-9914.00166
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    Cited by:

    1. Valeria Cirillo & Matteo Sostero & Federico Tamagni, 2017. "Innovation and within-firm wage inequalities: empirical evidence from major European countries," Industry and Innovation, Taylor & Francis Journals, vol. 24(5), pages 468-491, July.
    2. Valeria Cirillo, 2014. "Patterns of innovation and wage distribution. Do “innovative firms” pay higher wages? Evidence from Chile," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 181-206, December.

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