UNEMPLOYMENT AND LABOR-MARKET POLICY IN FINLAND

The author deals with how labour market policy could reduce unemployment, whether the high unemployment rate in Finland will be persistent and whether there are mechanisms in the labour market which makes unemployment more persistent. According to Eriksson, some evidence, although weak, implies that this persistence of unemployment is likely to have a measured impact. International experience shows, moreover, that a high unemployment rate today indicates a high rate in the future as well. Therefore, the main target of economic policy should be to reduce unemployment.