Alternative ways to organize government subsidies to unemployment insurance (UI) are analyzed in a right-to-manage model where industry-level unions run UI funds of their own. It is shown that equilibrium unemployment is decreasing in the share of UI financed by the employed union members. A...

This report uses an international input-output dataset to present an analysis of Finland’s position in global value chains. The results show that intermediate products account for a larger share – some three-quarters – of Finnish exports than they do in most other countries. The share of...

The study reconsiders the effects of tax progression in imperfectly competitive labour markets. Allowing for the individual supply of working hours, we show that the results derived in the standard model of decentralised wage bargaining do not hold if the wage setting is centralised or highly...

This paper considers the effect of labour taxation on wages and employment in a trade union model with endogenous working hours. In the model, individuals choose working hours with a given wage rate, competitive firms decide on employment taking wages and working hours as given and a monopoly...

In this study a numerical search equilibrium model of labour markets is applied to the Finnish data in order to analyse the factors behind the record high unemployment of the early 90?s. Job creation and job destruction are endogenously determined from the dynamic optimising behaviour of firms...

The report describes the development of labour taxation in Finland since the launching of the Employment Guidelines (EG) in 1997. The taxes considered include state and municipal taxes on earned income as well as social security payments of employees and employers. We find that the Finnish tax...