IDEAS home Printed from https://ideas.repec.org/p/fer/dpaper/210.html
   My bibliography  Save this paper

Labour Market Policy and Unemployment - A Job Flow Model of Finland

Author

Listed:
  • Sinko, Pekka
  • Holm, Pasi
  • Tossavainen, Pekka

Abstract

In this study a numerical search equilibrium model of labour markets is applied to the Finnish data in order to analyse the factors behind the record high unemployment of the early 90?s. Job creation and job destruction are endogenously determined from the dynamic optimising behaviour of firms and workers. We find that the labour market policy account for a remarkable part of the Finnish structural unemployment, but cannot explain the adverse development of employment over time. Instead, our analysis suggests that the upsurge in unemployment can be attributed to the increased uncertainty concerning the future productivity.

Suggested Citation

  • Sinko, Pekka & Holm, Pasi & Tossavainen, Pekka, 1999. "Labour Market Policy and Unemployment - A Job Flow Model of Finland," Discussion Papers 210, VATT Institute for Economic Research.
  • Handle: RePEc:fer:dpaper:210
    as

    Download full text from publisher

    File URL: https://www.doria.fi/handle/10024/148107
    Download Restriction: no

    References listed on IDEAS

    as
    1. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    2. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, January.
    3. Andrew Hildreth & Stephen Millard & Dale Mortensen & Mark Taylor, 1998. "Wages, work, and unemployment," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1531-1547.
    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


    Cited by:

    1. Piekkola, Hannu & Böckerman, Petri, 2002. "On Whom Falls the Burden of Restructuring? Evidence from Finland," Discussion Papers 714, The Research Institute of the Finnish Economy.
    2. Pekka Sinko, 2007. "Labour taxation, job creation and job destruction—Focusing on the role of wage setting," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(5), pages 583-604, October.
    3. Alho, Kari O. E., 2006. "Labour Market Institutions and the Effectiveness of Tax and Benefit Policies in Enchancing Employment: A General Equilibrium Analysis," Discussion Papers 1008, The Research Institute of the Finnish Economy.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fer:dpaper:210. 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: (Anita Niskanen). General contact details of provider: http://edirc.repec.org/data/vatttfi.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.