Changing occupational structures and implications for the quality of labour inputs, wage trends and productivity

The project explores the impact of technological change on private-sector workforce and, especially, occupational structures in Finland.

The first task of the project is to establish a comprehensive picture of the changes having occurred in occupational structures, and to also unravel major development trends behind these changes. This work utilizes approaches recently suggested by, inter alia, Thomas Lemieux and, in so doing, uses for the most part matched employee–employer data gathered by the Confederation of Finnish Industries EK.

The second task relates to examining – at the company and industry levels – the effect of worker flows and workforce re-structuring on the development of wage levels and the role of the business-cycle component in this context using so-called decomposition methods.

The third and final task sets out to investigate to what extent changing industry structures show up in changing labour-input quality and, ultimately, in the wage development and productivity of industries using so-called growth-accounting methods. Both the second and the third task will utilize wage structure data compiled by Statistics Finland.

The project is funded by The Finnish Work Environment Fund and it lasts from January 2011 to the end of 2012. ETLA’s researchers involved in the project are Dr. Rita Asplund (lead researcher), Dr. Antti Kauhanen, Dr. Mika Maliranta, and M. Sc. Pekka Vanhala.

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