The wage curve: Evidence from the Finnish metal industry panel data

Finnish Economic Papers | April 1, 2001| | Copyright

THE WAGE CURVE: EVIDENCE FROM THE FINNISH METAL INDUSTRY PANEL DATA*

In this paper we study the wage curve with Finnish metal industry panel data from the period 1991-95. As an unemployment variable we use the unemployment rate of the regional county. The unemployment rate is split into short- and long-term unemployment. The effect of active labour market policies is controlled for by augmenting the wage equation with a variable for subsidised employment schemes. The estimated unemployment elasticity of wages in the Finnish metal industry is somewhat smaller than the elasticities reported by ...

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