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What Would a Four-day Work Week Cost Finnish Exports? Factor Prices and Export Price Competitiveness

Author

Listed:
  • Markkanen, Jaakko
  • Siikanen, Markku
  • Valmari, Nelli

Abstract

We assess what a four-day, 32-hour work week would cost Finland’s goods exports across nine large commodity markets. Absent a productivity gain that offsets the lost hours, it would cut export revenue substantially, by about €2.4 billion (-6.4%) over the sample period. In capital-intensive industries the cost increase could, at worst, push the least profitable producers out of the market. As a benchmark, we also assess the effects of Finland’s 2017–2019 Competitiveness Pact (kiky), which raised export revenue in these markets by about €239 million (+0.6%). The Sipilä government’s original, more ambitious package would have raised it even further, by roughly €442 million (+1.2%).

Suggested Citation

  • Markkanen, Jaakko & Siikanen, Markku & Valmari, Nelli, 2026. "What Would a Four-day Work Week Cost Finnish Exports? Factor Prices and Export Price Competitiveness," ETLA Brief 184, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:briefs:184
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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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