This paper explores the sources underlying the marked increase in the dispersion of private-sector wages in Finland since the mid-90s by use of a recently proposed method to decompose changes along the whole wage distribution over a period of time into several factors contributing to those...

Abstract: This paper examines the causal link between foreign investment and firm performance in six small open economies in the European Union. Specifically, using micro data for manufacturing and services over the period 2001-2009, we analyse the effects of foreign mergers and acquisitions on...

The euro area economic  crisis is largely a result of the competitiveness disparity between Germany and the rest of the euro area. The wage moderation in Germany has considerably improved  its competitiveness in relation to the rest of the euro area. Wage policy has been deflationary in...

Information and communications technology, global value chains, and population ageing are changing the structures of the labour market. These three factors affect the tasks carried out in Finland in the future and the division of labour between humans and computers. The changes are taking place...

This report reviews some of the most recent literature examining the home country employment effects of internationalisation. A brief overview of the history of the internationalisation of Finnish firms is also presented. The general conclusion from the literature is that the absolute employment...

This study empirically explores whether the propensity to offshore affects the total domestic employment at the firm level. The analysis is based on a Finnish weighted sample of 652 firms and screens the effect of offshoring different kinds of tasks. Two main channels of offshoring tasks are...

We assess Finland’s competitiveness in the light of various, mainly short-term indicators. It turns out that the weak export market performance over the last few years is linked to the deterioration of profitability of production in Finland. A better export and employment performance requires...