This paper, using panel data on Finnish metalworkers for the years 1990–2000, explores gender differences in the allocation of workers across jobs of different complexity. The data provide measures for the complexity of the workers' tasks and for the individual productivity of each...

This paper examines the earnings effects of performance pay using linked employee-employer panel data from Finland's metal industry for 1990–2000. The authors estimate the effects of performance pay contracts in the presence of individual and firm unobserved heterogeneity as well as in...

This paper studies the cross-border health and productivity effects of alcohol taxes. We estimate the effect of a large cut in the Finnish alcohol tax on mortality, alcohol-related illnesses and work absenteeism in Sweden. This tax cut led to large differences in the prices of alcoholic...

An often cited explanation for the weak growth effects of education in developing countries is the misallocation of educated workers to inefficient activities in the public sector. This paper assesses the strength of this argument by studying the effect of educational attainment on employment...

This paper estimates the effect of a major education reform on intergenerational income mobility. The Finnish comprehensive school reform of 1972-1977 replaced the old two-track school system with a uniform nine-year comprehensive school and shifted the selection of students to vocational and...

We evaluate the effects of the school system on mathematical, verbal, and logical reasoning skills using data from the Finnish comprehensive school reform that abolished the two-track school system. We use a difference-in-differences approach that exploits the gradual implementation across the...

The goal of school tracking (assigning students to different types of school by ability) is to increase educational efficiency by creating more homogeneous groups of students that are easier to teach. However, there are concerns that, if begun too early in the schooling process, tracking may...