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Changes in the Finnish Wage Structure: Will Demand and Supply Do?

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  • Roope Uusitalo

Abstract

This study addresses changes in the wage structure in Finland between 1977 and 1995, and provides a simple explanation based on the demand for and supply of skills. The single index model of Card and Lemieux (1996) is augmented by incorporating changes in the supply of skills. The augmented model adequately accounts for the changes in relative wages between groups of different education and experience, but does not capture the changes in the within‐group distribution. JEL classification: J31

Suggested Citation

  • Roope Uusitalo, 2002. "Changes in the Finnish Wage Structure: Will Demand and Supply Do?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(1), pages 69-85, March.
    • Handle: RePEc:bla:scandj:v:104:y:2002:i:1:p:69-85
    DOI: 10.1111/1467-9442.00272
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    Cited by:

    1. Koerselman, Kristian & Uusitalo, Roope, 2014. "The risk and return of human capital investments," Labour Economics, Elsevier, vol. 30(C), pages 154-163.
    2. Böckerman, Petri & Laaksonen, Seppo & Vainiomäki, Jari, 2006. "Micro-level evidence on wage rigidities in Finland," MPRA Paper 1811, University Library of Munich, Germany.
    3. Pekkarinen, Tuomas, 2004. "Complex Production Processes and Wage Inequality," IZA Discussion Papers 1060, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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