This study considers employment and productivity growth generated by the public funding of R&D using linked employer-employee data in Finland. Public subsidies, instrumented by available public R&D funding in the industry/region, have a positive effect on productivity growth in small and...

This study uses linked employer-employee data from Finland over the period 1989-1996 to examine human capital, wage formation and its relation to firm characteristics such as high wages in large firms. The mean wage differential between plants in the 10th and 90th size classes equals 21% of the...

In this paper, the authors reconcile and extend previous results on the collectively optimal taxation of international investment income. The 'weighted average' rule of T. Horst (1980), for example, is shown to rest on unattractive assumptions on the set of instruments available, ruling out any...

Organizational activity, information and communication technology work, and research and development (R&D) can be classified as work that creates intangible capital. We measure the returns to these three types of labor input by accounting for differences in their productivity compared with other...

This volume considers the development of the wage formation and wage bargaining institutions as a response to changes in the bargaining environment. These changes include a lower level of inflation and the growth in intraindustrial trade as firms have become more specialised. The response to...

The study analyses the capital income taxation of foreign-source income, where residence and source criteria are the two well-known tax criteria. The study presents a globally optimal tax rule which equalizes the shadow price of capital in the countries and which is assumed to be a weighted...

  This paper describes divergences in employers' and employees' opinions on the proper share of local bargaining in contract wage gains in Finland. Employers want the locally bargained wage share to be approximately half of the total wage rise, while the majority of employees would prefer this...

In this study on labour input and wage formation in Finland the importance of liquidity constraints measured by the ratio of interest payments to cash flow is examined. Financial solvency problems are shown to lead to a reduction in labour input, potentially explaining for the most part the 16%...