The Finnish Wage Structure. Changes – Causes – Consequences

Abstract

The expansion of performance-related pay has increased wage inequality in Finland’s private sector in recent years. Wage differentials have grown within firms and establishments rather than between them. The broader use of performance bonuses has thus reshaped wage structures in the private sector, according to the final report of the joint research project of the ETLA Economic Research and the Labour Institute for Economic Research titled “The Finnish Wage Structure: Changes – Causes – Consequences”, published today.

Changes in private-sector remuneration systems have particularly increased wage dispersion among higher-paid personnel in managerial positions. In the service sector, this change began in the mid-1990s, while in manufacturing it only started around the turn of the millennium. (AI translation)

Publication Information

Asplund, R. & Kauhanen, M. (toim.), Suomalainen palkkarakenne. Muutokset – syyt – seuraukset, ETLA B245.

• ISSN: 1236-7176
• ISBN: 978-951-628-498-2
• Press Release in Finnish
• Publication in PDF-format