This paper compares Finland’s benefit system with two benefit reform scenarios: a uniform benefit for all ("basic income") and a universal tapering rule ("universal credit").
After a long period of lacklustre economic performance, robust growth has resumed.
In Finland, as elsewhere, income taxation and the withdrawal of benefits reduce the pay-off for individuals who go from benefits to work.
Finland enjoys a high level of income and well-being. Nevertheless, output has been dragged down by the global downturn, the decline of the electronics and paper industries and the Russian recession.
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This country note from Going for Growth 2017 for Finland identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
Macro-simulations benchmarking employment in Finland to the Nordic average show that closing the large gaps in labour participation vis-à-vis the other Nordics across genders and age groups would boost employment significantly.
Policies to speed up tertiary graduation, improve work incentives and activation of the unemployed and postpone labour market exit are necessary to bring the employment rate closer to the level of other Nordics
Reviving productivity requires improving framework conditions further so labour and capital can more easily move to the most dynamic sectors and firms, making the tax system more growth-friendly, and supporting innovation, basic research and young firms’ financing.
Finland enjoys a high level of income and well-being, but the economy has weakened and new reforms will be necessary to restart growth, boost productivity increase employment and restore competitiveness, according to the latest OECD Economic Survey of Finland.
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This country note from Going for Growth 2015 for Finland identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.