Labour Policy and Employment Rate: Conclusions Based on Research

Alasalmi JuhoBusk HennaKauhanen AnttiLeinonen TainaSolovieva SvetlanaValkonen TarmoViikari-Juntura Eira


The report consists of a literature review on employment effects of different labour market policies. The policy areas dealt with are active labour market policy, unemployment benefit system, benefit system connected with work disability and partial work disability, as well as labour income taxation. Policy conclusions and suggestions are presented based on these research findings.

We have relied on international meta-analyses and surveys, which we have supplemented with the most recent foreign and Finnish research findings. Regarding benefit systems connected with full and partial work disability, the main emphasis is on Nordic evaluation studies. Throughout the report special attention is paid to research quality, credibility of results and applicability to Finland. In relation to earlier literature, the overall impacts of measures of labour policy are dealt with extensively.

According to the report, it is possible to influence employment with labour market policies, but the effects will be limited. In addition to detailed policy conclusions related to areas we have dealt with, we also present general conclusions. Some frequent themes connected with these are side effects of measures, mutual substitutability, allocation, dependence on economic cycle, utilization of part-time solutions, cost-effectiveness and interdisciplinary activity.

Publications of the Government’s analysis, assessment and research activities, 2020:33.

Publication info

Results of research
Meta-analysis of the effectiveness of labor policy
Research group
Labour market and education
Labour policy, Active labour market policy, Unemployment insurance, Taxation, Work disability
Download the publication