Finland

Benefit reform for employment and equal opportunity in Finland

The combination of different working-age benefits, childcare costs and income taxation creates complexity, reduces work incentives and holds back employment.

Basic income or a single tapering rule? Incentives, inclusiveness and affordability compared for the case of Finland

This paper compares Finland’s benefit system with two benefit reform scenarios: a uniform benefit for all ("basic income") and a universal tapering rule ("universal credit").

Finland: growing and reforming, but no time for complacency

After a long period of lacklustre economic performance, robust growth has resumed.

Why would a universal credit be better than a basic income for Finland?

In Finland, as elsewhere, income taxation and the withdrawal of benefits reduce the pay-off for individuals who go from benefits to work.

Age, skills and labour market outcomes in Finland

Macro-simulations benchmarking employment in Finland to the Nordic average show that closing the large gaps in labour participation vis-à-vis the other Nordics across genders and age groups would boost employment significantly.

Employment and skills in Finland

Policies to speed up tertiary graduation, improve work incentives and activation of the unemployed and postpone labour market exit are necessary to bring the employment rate closer to the level of other Nordics

Boosting productivity in Finland

Reviving productivity requires improving framework conditions further so labour and capital can more easily move to the most dynamic sectors and firms, making the tax system more growth-friendly, and supporting innovation, basic research and young firms’ financing.

Local public finances and municipal reform in Finland

Finnish municipalities enjoy ample fiscal autonomy and provide or arrange the provision of a large share of public services. In recent years, their spending and debt has been increasing steadily, especially because of population ageing and increases in the cost of health care and social services.

The economic consequences of ageing: the case of Finland

Finland’s population is set to age rapidly in the coming decades. This will put pressure on public finances, while shrinking labour resources. Nonetheless, solutions exist to alleviate those pressures. Adjusting the pension age in line with the rise in life expectancy would reduce pension costs and increase older workers’ employment, provided it is accompanied by the removal of the pathways to early retirement.

OECD Central Government Debt Statistics 2012