Micro-level evidence on wage rigidities in Finland

This paper analyses the flexibility of the Finnish labour markets from the microeconomic perspective by focusing on individual-level wage changes for job stayers. The study covers the private sector workers by using three separate data sets obtained from payroll records of employers’ associations. Two main conclusions from wage formation emerge. First, there has been macroeconomic flexibility in the labour market. Real wage rigidity declined during the early 1990’s recession and a large proportion of workers experienced real wage cuts. We also find that average wage changes respond negatively to an increase in unemployment. Second, the evidence based on individual-level wage change distributions show that especially real wages are definitely rigid in Finland in international comparison. In addition, the evidence points out that individual-level wage changes have regained the high levels of real rigidity during the late 1990s that prevailed in the 1980s, despite the continued high (but declining) level of unemployment

Who bear the burden of wage cuts? Evidence from Finland during the 1990s

This paper explores the incidence of nominal and real wage cuts in the Finnish private sector during the 1990s. Centralized wage freezes together with a positive inflation rate produced real wage cuts for a large proportion of workers during the worst recession years of the early 1990s. In this sense, centralized bargaining shaped the adjustment. The results from micro data reveal that the full-time workers have had a lower likelihood of wage cuts compared with part-time workers. Declines in wages have also been more common in small plants. In addition, there is an important transitory component in wage cuts.micro-level, wages, adjustment

Micro-level Rigidity vs. Macro-level Flexibility: Lessons from Finland

This paper explores the wage flexibility in Finland. The study covers the private sector workers by using three data sets from the payroll records of employers’ associations. The data span the period 1985-2001. The results reveal that there has been macroeconomic flexibility in the labour market. Average real wages declined during the early 1990’s depression and a large proportion of workers experienced real wage cuts. However, the evidence based on individual-level wage change distributions shows that especially real wages are rigid. In particular, individual-level wage changes have regained the high levels of real rigidity during the late 1990s that prevailed in the 1980s, despite the continued high (but declining) level of unemployment.Wage flexibility; wage rigidity; wage cuts

Micro-level evidence on wage rigidities in Finland

This paper analyses the flexibility of the Finnish labour markets from the microeconomic perspective by focusing on individual-level wage changes for job stayers. The study covers the private sector workers by using three separate data sets obtained from payroll records of employers’ associations. Two main conclusions from wage formation emerge. First, there has been macroeconomic flexibility in the labour market. Real wage rigidity declined during the early 1990’s recession and a large proportion of workers experienced real wage cuts. We also find that average wage changes respond negatively to an increase in unemployment. Second, the evidence based on individual-level wage change distributions show that especially real wages are definitely rigid in Finland in international comparison. In addition, the evidence points out that individual-level wage changes have regained the high levels of real rigidity during the late 1990s that prevailed in the 1980s, despite the continued high (but declining) level of unemployment.Wage flexibility; wage rigidity; wage formation; wage cuts

Käyttäjäkokemuslähtöinen palveluiden suunnittelu älykkääseen kaupunkiin: Kaksi tapaustutkimusta Tampereen teknillinen yliopisto

The goal of this thesis was to determine if two specific services are suitable for smart city concept. To determine what kind of services are suitable for the smart city concept, a literature review was done about the smart city concept. Based on the review, in general, smart city services are usually based on information and communication technologies, services that make sharing and access to information easier and ease communication between citizens, service providers and decision makers. The services that are analyzed in this thesis were designed with companies involved in KÄPÄLÄ project. Tamware was designing a new Smart Hub concept to replace present bus stops and features for that design were gathered and prototype design tested with potential users. Citynomadi had finished a service for smart phones and internet that enables sharing and creation of routes with points of interest. Citynomadi wanted to find out new features and uses for their service for future versions of their service. The user studies made are described in this thesis and recognized design directions for services are described. For both services, the study results revealed features that if implemented in finished products they would add services value as a smart city concept service. Before made into finished products both services should still be further tested after adding functional features to them. Testing with new features and design changes ensures that usability is maintained in new modified services

Does ICT Usage Erode Routine Occupations at the Firm Level?

We present decompositions and regression analyses that evaluate the routinization hypothesis and occupational polarization at the firm level. We establish two important facts. First, the results for the increasing abstract and declining routine occupation shares of total wage bill are consistent with the routinization hypothesis at the firm level. Second, the observed changes coincide with the usage of ICT in firms. This implies that disappearing middle-level (routine) work can be traced to firm-level technological change.Peer reviewe

Is there job polarization at the firm level?

We perform decompositions and regression analyses that test for the routinization hypothesis and job polarization at the firm level, instead of the aggregate or industry level as in previous studies. Furthermore, we examine the technology-based explanations for routinization and job polarization at the firm level using firm-level R&D as an explanatory variable in the regressions. Our results for the intermediate education group and the routine occupation group are consistent with polarization at the firm level, i.e. disappearing middle due to technological change. These results are robust for accounting for dynamic selection effects

Are jobs more polarized in ICT firms?

We perform decompositions and regression analyses that test the routinization hypothesis and implied job polarization at the firm level. Prior studies have focused on the aggregate industry or local levels. Our results for the abstract and routine occupation groups are consistent with the routinization hypothesis at the firm level. The observed changes are linked to ICT adoption. Thus, disappearing middle-level (routine) work can be traced to firmlevel technological change.</p

Micro-level Rigidity vs. Macro-level Flexibility: Lessons from Finland

This paper explores the wage flexibility in Finland. The study covers the private sector workers by using three data sets from the payroll records of employers’ associations. The data span the period 1985-2001. The results reveal that there has been macroeconomic flexibility in the labour market. Average real wages declined during the early 1990’s depression and a large proportion of workers experienced real wage cuts. However, the evidence based on individual-level wage change distributions shows that especially real wages are rigid. In particular, individual-level wage changes have regained the high levels of real rigidity during the late 1990s that prevailed in the 1980s, despite the continued high (but declining) level of unemployment