Real wages in Finland show rigidity despite economic fluctuations, impacting workers.
The study looked at how wages change for workers who stay in their jobs in Finland. They used data from payroll records to see how wages changed during economic downturns and when unemployment went up. The researchers found that during the 1990s recession, many workers had their wages cut. They also discovered that when unemployment rises, average wages tend to go down. Additionally, they found that in Finland, individual wages are quite rigid compared to other countries. Even though unemployment was high, wages stayed inflexible in the late 1990s, similar to the rigid levels seen in the 1980s.