This article evaluates the fundamental characteristics of Finnish labour markets. As the unionization rate in Finland is exceptionally high by international standards, a bargaining approach incorporating the unions' key role in wage setting is applied. An analysis is made of basic trends in...

Reduced form wage and employment equations stemming from a bargaining framework are estimated with two-step method proposed by Engle and Granger (1987). Quarterly data for manufacturing and aggregate private sector is used. Step response functions due to various shocks were calculated by dynamic...

This paper reviews recent research on different modes of bargaining and their impact on economic performance. The aim is to examine whether a shift from a centralized bargaining procedure towards a less centralized mode would be favourable. The case is discussed in the special Scandinavian...

This article examines various aspects of the wage drift. It is reaffirmed that in Finland wage drift is closely related to the excess demand for labour. As excess demand for labour indicates that contractual wage is below the equilibrium wage we specify a bargaining model which determines the...

As an outcome of modelling wage setting and demand for labour in a bargaining framework, a lO-dimensional vector space is defined. This overparametrized system is reduced by means of conditioning. Structural restrictions which identify the long-run relations of interest are specified. The...

This paper consideres three union inodels with alternative specifications of union preferences. We examine the effects of four tax parameters of interest on both wages and employment. The main results are as follows. The conjecture of irrelevance of de jure incidence appears not to hold in union...

This article examines the process which generates wage increments in excess to those agreed upon collectively, Le. wage drift. A synthesis of the explanations common in the literature is sketched. This attempt has been strongly motivated by the notion that the time series properties of the wage...

Over the past twenty years or so, unemployment has been increasing in most OECD economies.In the same period, there has been a considerable increase in the wedge between the real cost to the employer of hiring a worker and the net real wage received by the worker.The present study examines...

This study examines wage paths in the Finnish manufacturing using the Johansen method in estimations.The empirical results have the following implications. i) Wage-wage links in the Finnish manufacturing industry have been tight.In a longer perspective, wages in the high-pay branches and low-pay...