Is the Labour Share Too Low in Finland?

Pekka Sauramo
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Pekka Sauramo: The Labour Institute for Economic Research

A chapter in Collective Bargaining and Wage Formation, 2005, pp 153-168 from Springer

Abstract: Abstract The paper discusses the drastic decline in the labour share which took place in Finland during the 1990s. It examines whether the low level of the labour share can be regarded as a new equilibrium level or whether it is an indication of macroeconomic disequilibrium. The concept of ELIS (equilibrium labour income share) employed by Draper and Huizinga (2000) is used in the characterisation of the level of the labour share. The paper emphasises that the low level of the labour share is, like the high level of the unemployment rate, an indication of disequilibrium. During the coming years the share can, therefore, increase without threatening the macroeconomic equilibrium.

Keywords: Interest Rate; Unemployment Rate; Technical Change; Real Interest Rate; Require Rate (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-7908-1598-6_11

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DOI: 10.1007/3-7908-1598-5_11

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