Jonathan Gruber, Ohto Kanninen, Terhi Ravaska, 22 November 2020

Fiscal sustainability challenges have prompted governments to restructure public pension systems, including the focal retirement ages. This column shows that relabelling ‘early’ and ‘normal’ retirement ages in a 2005 reform in Finland changed people’s retirement rate. Such relabelling allows policymakers to shape retirement behaviour with little fiscal cost. However, there is a marginal increase in regret among those who responded to the change in retirement ages, suggesting a potential source of welfare loss from inducing excess retirement.

Andrea Ariu, Katariina Nilsson Hakkala , J. Bradford Jensen, Saara Tamminen, 22 November 2019

Global trade in services increased six-fold between 1990-2017, representing a threat for workers but a growth opportunity for firms that source these services at lowest cost. This column examines the changes in employment composition and performance of Finnish service importers. Firms that increased imports of service inputs reduced employment of low-skill service workers but increased employment of managers. They also improved their sales, assets, and service exports, and were more likely to survive.

Cormac Ó Gráda, 02 September 2019

Of WWII’s warring powers only the Soviet Union suffered mass starvation, but as this column, part of a Vox debate on the economics of WWII, describes, it is a measure of the war’s global reach that 20 to 25 million civilians died of hunger or hunger-related diseases outside Europe. In Britain effective rationing ensured a ‘fair’ distribution of food supplies throughout the war and in Germany the famine conditions experienced in 1918-19 were not replicated, but Japan was facing semi-starvation at war’s end. In Europe, apart from Greece and the Soviet Union, famine mortality was modest, but 3-5% of the populations of faraway Bengal, Henan, and Java perished. 

Philippe Aghion, Ufuk Akcigit, Ari Hyytinen, Otto Toivanen, 23 December 2017

Innovation is a crucial element of modern societies, but who becomes an inventor? This column shows that parental income affects the probability of someone becoming an inventor, but that this impact is greatly diminished once parents’ socioeconomic status, parents’ education, and the individual's IQ are controlled for. Overall, the results suggest a prominent role for parental education and for IQ in explaining an individual’s probability of inventing.

Richard Baldwin, Vesa Vihriälä, 19 December 2017

Despite the setbacks globalisation has faced in recent years from reactionary politics, the advent of artificial intelligence and robotisation are set to ensure its continuation. Domestic policy must therefore be designed in such a way as to reap the rewards of globalisation while avoiding its pitfalls. This column uses the case of Finland to show how this can be done. Finland has grown faster than its peers over two waves of globalisation, despite enduring substantial setbacks. In both its successes and challenges, it is an important example of the need for deliberate policies to prepare for future disruptions.

Jens Nordvig, 06 November 2012

Conversations about the breakup of the Eurozone are changing. This column argues that an 'avoid breakup at all costs' dogmatism may not be a prudent view. Getting good data may well be difficult, but any arguments about the cost of a Eurozone breakup must be compared to the ongoing cost of the status quo.

Alex Bryson, 21 October 2011

A growing body of evidence indicates that certain modern management practices increase firm profitability. What remains largely unknown is their effect on workers’ wellbeing. This column uses data from Finland and suggests high-involvement management – that is, engaging workers more fully in their jobs – is associated with higher job satisfaction, non-tiredness, and a lower probability of accident.

Ari Hyytinen, Frode Steen, Otto Toivanen, 05 May 2010

Should cartels be regulated? This column outlines a new economic toolkit that models the creation of cartels and compares these predictions with real-life observations. Focusing on forty years of postwar data from Finland, this column finds that once cartels are formed, they are long-lasting. If unregulated the amount of cartels will only increase.

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