Regional growth centres - the most attractive location in Finland?

The present study analyses migration patterns in Finland to test if micro- economic evidence for the Harris-Todaro model is found. The H-T hypothesis states that rural-urban migration is a results of differences in expected earnings and employment prospects. In addition to the basic framework factors such as distance-decay and human capital accumulation are considered. The recent migration trend in Finland show concentration of population in a handful of urban growth centres. Human capital is flowing towards those regions while rural areas are losing theirs. In recent years this tends has become more apparent, though the analysis of long-run trends shows that the urban pattern has been developing over several decades. Both the H-T hypothesis and the distance-decay hypothesis are supported by the data. Human capital (young, educated individuals) shows also greater concentration, as expected.

Regional convergence in Finnish provinces and subregions, 1960-94

This paper analyses regional productivity convergence in Finland using two different data sets. Firstly, absolute and conditional convergence was estimated in the 12 Finnish provinces during 1960-94. Convergence was found to be strong in 1960-80, but after 1980 regional disparities started to grow again. Secondly, similar study was made for the 88 small-scale subregions in 1988-94. In addition, the subregions' relative growth performance and cross-sectional convergence dynamics were evaluated using Markov chain transition matrices. No clear evidence of (beta- or sigma-) convergence was found here, but the dynamic analysis revealed an evolving regional distribution of productivity and noticeable potential for convergence. Thus the regional classification and the method used can markedly affect the results obtained in a convergence study.

Regional Labour Market Adjustment: Are Positive and Negative Shocks Different?

This paper investigates the evolution of regional disparities in Finland between 1988 and 1997. The analysis focuses on per capita GDP and its subcomponents, particularly labour productivity, jobs and population. The results show, first, that the evolution of labour productivity and the number of jobs account for the emerged regional divergence of per capita GDP during 1990-1995. Second, even though inter-regional migration tends to have convergent effects on regional per capita GDP, its effect was not strong enough during 1990-1995: the divergence of productivity and jobs dominated. Third%2C among divergent factors (productivity and jobs), manufacturing contributes the most to the divergence of per capita GDP, whereas private services is the main convergent sector. Finally, the divergence of regional productivity (or jobs) in a sector does not necessarily contribute to regional divergence of overall per capita GDP, since the most productive activity (or most of the jobs) in some sector are not necessarily located in regions where per capita GDP is the highest.

Migration and individual earnings in Finland: a regional perspective

Attention has recently focused on the rapidly increasing pace and regional concentration of migration in Finland. Worries have been expressed about its possible repercussions on regional differences in income- and population structures. This study investigates the effects of moving on individuals, and compares these effects across the Finnish regions. Significant regional differences in types of in-migrants and their income development are observed. The results indicate that, in general, migrants tend to benefit from moving in form of higher post-move incomes. In particular, individuals who move to relatively rich regions obtain a higher level of incomes succeeding the move and also experience faster income growth. Those moving to poorer regions generally have lower incomes, yet moderate income growth. These findings indicate that migration contributes to changing regional balance in Finland, acting primarily as a dis-equilibrating mechanism

Regional growth centres - the most attractive location in Finland?

The present study analyses migration patterns in Finland to test if micro- economic evidence for the Harris-Todaro model is found. The H-T hypothesis states that rural-urban migration is a results of differences in expected earnings and employment prospects. In addition to the basic framework factors such as distance-decay and human capital accumulation are considered. The recent migration trend in Finland show concentration of population in a handful of urban growth centres. Human capital is flowing towards those regions while rural areas are losing theirs. In recent years this tends has become more apparent, though the analysis of long-run trends shows that the urban pattern has been developing over several decades. Both the H-T hypothesis and the distance-decay hypothesis are supported by the data. Human capital (young, educated individuals) shows also greater concentration, as expected

Educational policy and intergenerational income mobility: evidence from the Finnish comprehensive school reform

This paper estimates the effect of a major education reform on the intergenerational income mobility in Finland. The Finnish comprehensive school reform of 1972-1977 replaced the old two-track school system with a uniform nine-year comprehensive school and significantly reduced the degree of heterogeneity in the Finnish primary and secondary education. We estimate the effect of this reform on the intergenerational income elasticity using a representative sample of males born during 1960-1966. The identification strategy relies on a difference-in-differences approach and exploits the fact that the reform was implemented gradually across country during a six-year period. The results indicate that the reform reduced the intergenerational income elasticity by about seven percentage points.Intergenerational mobility; education; comprehensive school reform

Regional convergence in Finnish provinces and subregions, 1960-94

This paper analyses regional productivity convergence in Finland using two different data sets. Firstly, absolute and conditional convergence was estimated in the 12 Finnish provinces during 1960-94. Convergence was found to be strong in 1960-80, but after 1980 regional disparities started to grow again. Secondly, similar study was made for the 88 small-scale subregions in 1988-94. In addition, the subregions' relative growth performance and cross-sectional convergence dynamics were evaluated using Markov chain transition matrices. No clear evidence of (beta- or sigma-) convergence was found here, but the dynamic analysis revealed an evolving regional distribution of productivity and noticeable potential for convergence. Thus the regional classification and the method used can markedly affect the results obtained in a convergence study