The development of regional underutilisation of labour resources in Finland 1972-89

Hannu Tervo

Finnish Economic Papers, 1992, vol. 5, issue 1, 47-60

Abstract: In this paper the regional utilisation of labour resources in Finland over the period 1972 - 89 is analysed. According to the results, underutilisation has increased in Southern Finland (excluding Uusimaa), while elsewhere the upward trend is not so apparent. Even though hidden unemployment has decreased at the expense of open unemployment, the hidden unemployment component remains the largest of the three components of regional underutilisation. The econometric analysis showed that regional differences in utilisation of labour resources tend to grow during upturns and diminish during downturns. Market conditions, however, seem to have no effect on regional underutilisation in the long run. The results concerning the effects of migration and regional policy were less clear. Some support was obtainedfor the hypothesis that underutilisation grows if barriers to migration increase.

Date: 1992
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