Wage Setting in Finland [electronic resource]: Increasing Flexibility in Centralised Wage Agreements / Åsa Johansson = Fixation des salaires en Finlande : Accroître la flexibilité dans les accords salariaux centralisés / Åsa Johansson

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Johansson, Åsa

Material type: Article

ArticleSeries: OECD Economics Department Working Papers ; no.503.Publication details: Paris : OECD Publishing, 2006.Description: 26 p. ; 21 x 29.7cmOther title:

Fixation des salaires en Finlande Accroître la flexibilité dans les accords salariaux centralisés

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Abstract: The centralised wage agreements have helped to contain inflation. There is evidence that wage increases were more moderate when a central agreement was concluded than in periods when no central agreement was reached. Nevertheless, there is also evidence that centralised wage setting has had some drawbacks in terms of reducing employment among low-skilled and younger workers because of high minimum wage floors. In the current wage setting system there are components that allow for greater relative wage flexibility. These should be used more extensively. The role of the government in future agreements should be to encourage greater relative wage flexibility within the current bargaining framework. This paper relates to the 2006 Economic Survey of Finland (www.oecd.org/eco/surveys/finland).

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Working Paper	Biblioteca Digital	Colección OECD	OECD 873363738433 (Browse shelf(Opens below))	Not For Loan

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The centralised wage agreements have helped to contain inflation. There is evidence that wage increases were more moderate when a central agreement was concluded than in periods when no central agreement was reached. Nevertheless, there is also evidence that centralised wage setting has had some drawbacks in terms of reducing employment among low-skilled and younger workers because of high minimum wage floors. In the current wage setting system there are components that allow for greater relative wage flexibility. These should be used more extensively. The role of the government in future agreements should be to encourage greater relative wage flexibility within the current bargaining framework. This paper relates to the 2006 Economic Survey of Finland (www.oecd.org/eco/surveys/finland).

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