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Computerization Threatens One Third of Finnish Employment

Author

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  • Pajarinen, Mika
  • Rouvinen, Petri

Abstract

We find that one third of Finnish employment is highly susceptible to computerization in the next decade or two. While this share is large, it is ten percentage points less than the corresponding share in the United States, which reflects cross-country differences in occupational structures. Low wage and low skill occupations appear more threatened. Service jobs are relatively more sheltered than manufacturing jobs. The estimated impacts do not necessarily imply future mass unemployment, since the approach employed does not take into account changes in the task content within occupations or the evolution in the mix of occupations. It also ignores powerful societal forces, such as prevailing regulation and established organizational structures, hindering technological advance. Despite these caveats, our findings suggest major future changes in Finnish employment.

Suggested Citation

  • Pajarinen, Mika & Rouvinen, Petri, 2014. "Computerization Threatens One Third of Finnish Employment," ETLA Brief 22, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:briefs:22
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    References listed on IDEAS

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    1. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
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