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The Effects of European Integration on the Finnish Labour Market

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Microsoft Word - gradu_1.doc VATT-KESKUSTELUALOITTEITA VATT DISCUSSION PAPERS 422 WAGE AND EARNINGS LOSSES OF DISPLACED WORKERS IN FINLAND Jukka Appelqvist Valtion taloudellinen tutkimuskeskus Government Institute for Economic Research Helsinki 2007 I would like to express my gratitude to both Ossi Korkeamäki and Tomi Kyyrä who have been invaluable in helping this study to be completed. In addition, I owe thanks to Panu Poutvaara and Hanne Ahonen for their many comments on earlier drafts of this paper. Seija-Liisa Ahonen kindly typeset this in VATT- format. Naturally, the author is solely responsible for any mistakes that may remain. ISBN 978-951-561-717-0 (nid.) ISBN 978-951-561-718-7 (PDF) ISSN 0788-5016 (nid.) ISSN 1795-3359 (PDF) Valtion taloudellinen tutkimuskeskus Government Institute for Economic Research Arkadiankatu 7, 00100 Helsinki, Finland Email: [email protected] Oy Nord Print Ab Helsinki, May 2007 APPELQVIST, JUKKA: WAGE AND EARNINGS LOSSES OF DISPLACED WORKERS IN FINLAND. Helsinki, VATT, Valtion taloudellinen tutkimus- keskus, Government Institute for Economic Research, 2007, (C, ISSN 0788-5016 (nid.), ISSN 1795-3359 (PDF), No 422). ISBN 978-951-561-717-0 (nid.), ISBN 978-951-561-718-7 (PDF). Abstract: The purpose of this study is to investigate the cost of job displacement for private sector workers displaced in Finland during the years 1992 and 1997. Our main goal is to measure the ways in which involuntary job loss affects the subsequent labor income of displaced workers when compared to similar workers who were not displaced. Our main finding is that displaced workers suffer substantial and persistent losses in both monthly wages and annual earnings. The severity of these losses is related to the time during which the displacement happened: the workers who were displaced in 1992 (during the recession) suffered considerably larger losses than the workers who were displaced in 1997. The final sect

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