We analyze the impact of the Finnish tax-benefit system on the financial incentives to take up a job and to work more. The analysis is conducted with the Finnish microsimulation model SISU in 2015-2021. We analyze the presence of unemployment traps in the population and characterize the...

We analyze the impact of the Finnish tax-benefit system on the financial incentives to take up a job and to work more. The analysis is conducted with the Finnish microsimulation model SISU in 2015–2021. We analyze the presence of unemployment traps in the population and characterize the...

The amount of work done in the economy has been subject to a lot of debate in Finland recently. Unemployment is considered a major problem. On the other hand, extending annual working time receives little support. In fact, a widely held view is that one should reduce the working time of the...