We make several findings related to the dynamics of labour markets and industry life cycles in our analysis, which makes use of longitudinal employer-employee data that cover the whole working age population in Finland. Firstly, we find that across industry transitions of the employed are...

We examine the determinants of labour market status after the initial vocational basic education (ISCED 3) by use of unique linked register data on students, their parents, teachers, educational organisations and business companies in Finland. We distinguish between four outcomes : 1) employment...

In contrast with the experiences of the UK and the US, the distribution of labour and capital income has changed sharply in favour of capital in most Continental European and Nordic countries during the past two decades. We examine forces behind the evolution of the aggregate labour share by...

Analyses in this paper do not support the idea that job and worker flows have become more intensive and have deteriorated working conditions in the Finnish business sector. The magnitude of flow has in fact been rather stable since 1997. However, job flows are at a quite high level, as some 10%...

We compare different tax incentive schemes for private R&D investments using a numerical model of R&D-investments and firm dynamics. We find that tax incentives that are based on the incremental annual spending increase firms' R&D spending much more than tax incentives that are based on the...

Despite a rapidly expanding theoretical and empirical literature emphasising the role of incessant intra-industry restructuring in productivity growth, few studies have gone beyond the framework of the representative firm in examining convergence or divergence in regional productivity. We use...

We study whether older workers are costly to firms. Our estimation equations are derived from a variant of the decomposition methods frequently used for measuring micro-level sources of industry productivity growth. By using comprehensive linked employer-employee data from the Finnish business...

This paper reviews the characteristics and magnitude of information technology (IT) outsourcing as well as studies its labor productivity effects with a representative sample of Finnish businesses. Depending on the IT task in question, on average from one-third to two-thirds of IT has been...

Is the process of workforce aging a burden or a blessing for the firm? Our paper seeks to answer this question by providing evidence on the age-productivity and age-earnings profiles for a sample of plants in three manufacturing industries (forest, industrial machinery and electronics) in...