Chapter

Finland

Roope Uusitalo and Juhana Vartiainen

in The Structure of Wages

Published by University of Chicago Press

Published in print February 2009 | ISBN: 9780226470504
Published online February 2013 | e-ISBN: 9780226470511 | DOI: http://dx.doi.org/10.7208/chicago/9780226470511.003.0006
Finland

Show Summary Details

Preview

This chapter reports an econometric analysis of the wage structure in Finnish manufacturing industries. It attempts to illustrate how the last ten years have meant a gradual increase in the importance of firm-specific factors in pay determination. The Finnish wage bargaining system aims to control the average rate of wage growth while leaving relative wages to decentralized, plant-level, or individual decision making. The average wage of the lowest decile is about 57 to 59 percent of the mean wage in Finland, a couple of percentage points lower than in Sweden. The Finnish wage-setting institutions lead to fairly uniform wage increases. Those who change occupation or employer are exposed to higher variation of earnings growth. Wage setting is becoming a bit more firm specific, while centralized agreements on pay increases continue to be the main force that impacts the growth in average pay.

Keywords: wage structure; Finnish manufacturing industries; econometric analysis; wage bargaining system; Finland; occupation; earnings growth

Chapter.  11291 words.  Illustrated.

Subjects: International Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.