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BACKGROUND AND AIMS Previous studies have shown that prescription opioid use is more common in socio-economically disadvantaged communities in the United States. This study examined the area and individual-level determinants of prescription opioid use in Finland during the period 1995-2016. DESIGN Logistic regression analysis using nation-wide data on filled opioid-related prescriptions dispensed at Finnish pharmacies and covered by National Health Insurance. Opioid consumption was linked, using personal identification codes, to population-based data maintained by Statistics Finland, which records individual background and area-level characteristics. SETTING AND PARTICIPANTS Working-age population aged between 15 and 64 years in Finland during the periods 1995-2007 (n = 4 315 409) and 2009-16 (n = 4 116 992). MEASUREMENTS Annual prescription opioid use was measured using defined daily doses (DDD) and whether people used opioids during a year. FINDINGS Prescription opioid use increased in Finland from 1995 to 2016 (from less than 1 to 7%), but the increase was explained by the change in the treatment of codeine-based opioids in National Health Insurance. The area-level unemployment rate was positively correlated with the share of opioid users at the municipal level (r = 0.36; P

Background: The secular decline in labor market participation and the concurrent increase in opioid use in many developed countries have sparked a policy debate on the possible connection between these two trends. We examined whether the use of prescription opioids was connected to labor market outcomes relating to participation, employment and unemployment among the Finnish population. Methods: The working-age population (aged 19–64 years) living in Finland during the period 1995–2016 was used in the analyses (consisting of 67 903 701 person-year observations). Lagged values of prescription opioid use per capita were used as the exposure. Instrumental variables (IV) estimation method was used to identify causal effects, where opioid use per capita for the elderly (65–95-year-old) was used as an instrument for the opioid use per capita for the working-age population of the same gender, education and region. Results: Increased opioid use led to worse labor market outcomes in the long run, with the effect size of 16 % and 20 %, compared to the standard deviation of the employment and participation rates. On the contrary, in the short run, increased opioid use had positive employment effects. Conclusions: Policymakers should take the contradictory short- and long-term effects into account while considering regulation and monitoring of opioid use. Regulating and monitoring long-term prescription opioids is crucial for reducing their negative labor market consequences. publishedVersion

This paper examines the impact of the introduction of the value-added tax on inequality and government revenues using newly released macro data. We present both conventional country fixed effect regressions and instrumental variable analyses, where VAT adoption is instrumented using the previous values of neighbouring countries’ VAT systems as an instrument. The results reveal – in contrast to earlier work – that the revenue consequences of the VAT have not been positive. The results indicate that income-based inequality has increased due to the VAT adoption, whereas consumption inequality has remained unaffected.

In internationalisation processes, international expansion exposes family SMEs to external networking and the risks such expansion entails, and perceived threats to their socioemotional wealth (SEW) might restrain their willingness to take these actions. However, very few studies measure SEW and associate it with internationalisation. Considering SEW preservation’s prominence in family SMEs and SMEs’ heavy dependence on networking during internationalisation, we hypothesise that SEW preservation has a negative association and networking has a positive association with the family SMEs’ degree of internationalisation (DOI). We reconstruct four SEW constructs that carry significance for family SMEs—family-heritage maintenance, family-controlled decision-making, familial relationship-building and emotional decision-making—used in the SEW-related hypotheses and as moderators of networking’s effects. A multiple regression analysis of 89 Finnish SMEs (47 of which were family SMEs) suggests that emotional decision-making has a strong negative relationship and networking has a strong positive relationship with DOI. The results extend and clarify the restraining role of SEW through affective preferences and needs in family-SME internationalisation, while also emphasising the economising role of networking in offsetting dysfunctional SEW and related bifurcation bias in the long run. Post-print / Final draft

In this paper, we examine the long-term patterns of geographical disparities in human capital and income in Finland and Sweden over the period 1987–2015. Using nationwide longitudinal population register data, we analyze disparities at different spatial scales, between and within functional labor market regions determined by observed travel-to-work patterns. Contrary to the findings from many other developed economies indicating inter-regional divergence in per capita income, we find indications of inter-regional convergence in per capita earnings among the functional labor market regions in both countries after 2000. However, small, and peripheral regions have not recovered from the macroeconomic shocks in the 1990s, in terms of per capita earnings. Our estimates indicate relatively small and statistically insignificant changes in the geographical dispersion of human capital at the inter-regional scale. At the intra-regional scale, the disparities in human capital and earnings between the core and hinterlands are relatively large and persistent, although some evidence of convergence is found for Finland. The largest intra-regional differences in human capital and earnings are found within the metropolitan labor markets. peerReviewed

In this paper, we analyse long-term changes in the regional distribution and migration flows of university graduates in Finland and Sweden. This study is based on detailed longitudinal population register data, including information on high school grades and parental background. We find a distinct pattern of skill divergence across regions in both countries over the last 3 decades. The uneven distribution of human capital has been reinforced by the mobility patterns of university graduates, for whom regional sorting by high school grades and parental background is evident. Our findings indicate that traditional measures of human capital concentration most likely underscore actual regional differences in productive skills.

Outside the USA, relatively little is known about the labour-market returns to postsecondary vocational (or polytechnic) education. Yet, polytechnics in Europe are distinct from US community colleges. This paper focuses on the labour-market returns to polytechnic attendance in Finland, where polytechnics are representative of many European countries. Using matching methods and longitudinal administrative data, we find that, compared to individuals with no postsecondary education, students who attend polytechnics have higher annual earnings of €3,300 to €3,700 and employment gains of 2.5 to 6.6 percentage points 10 years after the entry decision. However, the returns vary by personal characteristics and field of study. peerReviewed

In this paper, we investigate how the innovation expectations of public financiers are related to realized patents. The analysis is based on a novel data set of collaborative R&D projects subsidized by the Finnish Agency of Technology and Innovation (Tekes) and the European Regional Development Fund (ERDF) during the period 2000–2004. Innovation expectations are measured using reports submitted by Tekes experts during ex ante assessments of projects. Our probit model results reveal that Tekes' patent expectations are positively related to realized patents for projects led by private firms (but not by public organizations). For large organizations, Tekes' innovation expectations are better at predicting patenting.

More educated, more mobile? Evidence from post-secondary education reform. Spatial Economic Analysis. This paper examines the causal impact of the level of education on within-country migration. To account for biases resulting from selection into post-secondary education, it uses a large-scale reform within the higher education system that gradually transformed former vocational colleges into polytechnics in Finland in the 1990s. This reform created quasi-exogenous variation in the supply of higher education over time and across regions. The results based on multinomial treatment effects models and population register data show that, overall, polytechnic graduates have a significantly higher probability of migrating than vocational college graduates, although the estimates vary, for example, by gender, field of study and region. peerReviewed

To understand how the type of education affects long-term mental health, we examine the effects of a comprehensive school reform on mental health–related hospitalizations and deaths. The reform postponed the tracking of students into vocational and academic schools from age 11 to age 16, thus affecting the set of peers and the curriculum to which these students were exposed. The reform was implemented gradually across Finnish municipalities between 1972 and 1977. We use difference-in-differences variation and administrative data. Our overall results show no discernible effects on mental health–related hospitalizations or deaths, but heterogeneity analysis shows an adverse effect on hospitalizations due to depression for females from highly educated families. peerReviewed

This chapter studies the link between working while studying and migration. Understanding this link is important because policy-makers are often calling for actions that would cut down the hours students spend on working to shorten the graduation time. The chapter’s analysis focuses on graduates from Finnish universities, polytechnics and vocational schools in 1991–2004. It uses rich register-based longitudinal microdata constructed by Statistics Finland, and find a negative relationship between working while studying and graduate migration. An increase in student employment can thus partly explain the decline in geographic mobility among Finnish graduates from higher education.

To date, few empirical studies have attempted to highlight the impact of the socio-economic characteristics of older entrepreneurs according to whether they are driven by necessity or opportunity. Tervo and Haapanen contribute to the economics of ageing by showing that opportunity- and necessity-driven senior entrepreneurs differ in terms of socio-economic characteristics. This chapter utilizes a longitudinal data set from Finland. Individuals aged between 55 and 70 entering self-employment are grouped in terms of pull and push motivations. Profiles of entrepreneurs are developed using personal, family, and environmental characteristics. The results show that opportunity-driven older self-employed workers are more likely to be highly educated males, whereas necessity-driven older self-employed workers are often less educated females and individuals who live in rural areas. peerReviewed

Tokila A. and Haapanen M. Evaluation of deadweight spending in regional enterprise financing, Regional Studies. The problem of deadweight spending has been previously studied using diverse methods. However, regional variations in deadweight spending have not yet been considered. An evaluation of regional business subsidies in Finland during 2000–2003 is conducted. The analysis reveals regional differences in deadweight spending in proportional and, particularly, in monetary terms. Deadweight spending is dependent on many firm-, project- and regional-level factors, which also largely account for regional differences. However, there seems to be some regional variation in deadweight spending that originates from differences in the subsidy processes among regions. Tokila A. et Haapanen M. Evaluer les investissements non-productifs dans l'aide regionale a la creation d'entreprise, Regional Studies. Dans le passe, la question des investissements non-productifs a ete etudiee a partir de diverses methodes. Cepend...

We examine the inter-regional migration of university graduates from 1991 to 2003 in Finland. The results show that time matters: two-years before and during the graduation year the hazard rates of migration increase, and then decrease thereafter. Although university graduates are particularly mobile, we find that most of them do not move from their region of studies within 10 years after graduation. The out-migration, i.e., brain drain, is much higher among graduates in the more peripheral universities than in the growth centers (Helsinki in particular). Migration is also substantially more likely for those studying away from the home region than for those studying at home. peerReviewed

An important problem in measuring the impacts of business subsidies is their separation from deadweight, which refers to changes that would have occurred even in the absence of intervention. Both public and private assessments have been used previously to study deadweigh, but so far little is known about how they correspond to each other. To address this issue we conducted a joint evaluation of the private and public assessments of deadweight for Finnish business projects. A unique dataset combines large register data with both public and private information on projects financed in 2000–03. First, our results suggest that the different measures for deadweight are greatly uncorrelated, and thus cannot be used as substitutes. Second, characteristics affecting the public and private measures of deadweight are identified using ordered probit models. We find that the public and private sectors emphasize different factors in their assessment of deadweight. Third, an upper bound for the level of deadweight spending is estimated at 73.8%.

An interesting yet largely unstudied question regarding labour migration behaviour and residence duration is whether migration becomes more or less likely over time. This paper analyses the determinants of residence duration for Finnish graduates. Our results affirm the importance of cumulative inertia as a determinant of migration. The longer a person stays in a region, the smaller are the hazard rates of migration. However, for those graduates who moved to a new region during their year of graduation, the propensity for repeat migration is particularly high during their first three years of residence.

In the evaluation of investment subsidies one of the critical issues concerns the assessment of deadweight, that is, the degree to which projects would have been carried out without grant assistance. With the increasing restrictions on and cuts in subsidies for investment projects in the EU countries maximisation of the impact of the public resources that remain can be achieved through their allocation for projects with minimum deadweight. This paper studies the profile of subsidised zero deadweight investment projects – projects that would be abandoned without public subsidies – in Finland. The empirical analysis is conducted using micro level data on investment projects by private sector firms. The data set comprises 3,423 projects that were granted public investment subsidies between 2001 and 2003. Our results show that the likelihood of zero deadweight is significantly dependent on the characteristics of the subsidised firm, the characteristics of the investment project and the location of the subsidi...

Outside the U.S., little is known about the labor-market returns to vocational (or polytechnic) postsecondary education. This paper focuses on the labor-market returns to polytechnic bachelor's degrees in Finland. Using detailed administrative data, we estimate person fixed effect models to study returns for individuals with labor-force attachment prior to polytechnic school enrollment. We find sizable earnings and employment impacts for polytechnic bachelor's degrees, although the returns vary by personal characteristics and field of study.

This paper analyses the role which migration of highly educated labour plays in human capital reallocation. The study focuses on actual migrants, examining the direct effect of educational attainment on destination choices. The paper uses the ordered probability model and a micro-level data set in econometric analyses. Individual level investigations of migrants show that highly educated migrants are likely to move to urban regions. As a result, the reallocation of highly educated labour, and thereby also the redistribution of human capital, seems to be taking place in Finland. peerReviewed

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This paper analyses female and male entrepreneurship and the differences between them in Finland. The female self-employment rate is clearly lower than that of male self-employment in Finland. The paper shows that differing behaviour accounts for differing rates of self-employment between females and males. The predicted earnings differential between self-employment and paid employment has a divergent effect on the probabilities of self-employment. For males, it is positive (as expected). For females, it has no effect, which accentuates the other motives they have for self-employment. Both spouse and family are found to have bigger effects on female self-employment than on male self-employment. Yet, personal characteristics are behind entrepreneurship for both sexes. Regional characteristics are more important for male than female self-employment. The analysis is based on a structural probit model and a large register-based data set representing a 7% random sample of all Finns in 2001. peerReviewed

Previous research has shown that local environment is important for self-employment. Self-employment dynamics varies between areas characterized by different labour market conditions, entrepreneurial tradition and other structural factors. Alternation between different labour market states (self-employment, paid-employment, non-employment) is also likely to increase if employment opportunities remain low in local labour market markets. This paper analyses the factors influencing the duration of self-employment spells in Finland with a large registered-based data set from the period of 1987-2002. It is evident that rates of exit out of self-employment and the length of self-employment spells depend upon personal characteristics and cyclical trends in the economy. The main aim is to analyse the role of region-specific factors as compared with individual specific and other factors on the duration of self-employment spells. Self-employment duration is modelled by using discrete survival analysis. First, descriptive analysis is done. Second, simple Cox proportional hazard models are estimated. Third, more complex hazard models e.g. with competing risks are used.

Haapanen M. and Ritsila J. (2007) Can migration decisions be affected by income policy interventions? Evidence from Finland, Regional Studies 41, 339–348. Using Finnish micro-level data, this paper maps out whether migration decisions can be affected by income policy interventions. The analysis focuses on individuals living in peripheral regions and distinguishes peripheral migration from growth-centre migration. In support of the human capital hypothesis, the estimation results imply that migration decisions can be affected by income policy interventions. For example, an intervention that would increase an individual's expected disposable income by 10%, given that he/she does not move to a growth-centre region, would decrease his/her probability of growth-centre migration by approximately 12%. However, the impact appears to be modest compared, for example, with the impact of education on migration. Haapanen M. et Ritsila J. (2007) La decision de migrer, est-elle influee par des politiques des revenus pon...

An interesting, but yet largely unstudied question concerns migration behaviour in different labour markets from the point of view of duration. How long are residenece spells? Why do some migrants move quite soon after the move, while others stay for a long time? How do personal and family characteristics account for differences in residence spells and repeat migration? Does earlier migration experience or other prior activity or experience explain for this? What is the role of labour market conditions and other region-specific factors? This paper deals with migration behaviour in Finland in 1987-2002. Migration will be analyzed in a duration-model context where movement is seen as terminating an observed residence spell. The data set is based on a Longitudinal Census File and the Longitudinal Employment Statistics File constructed by Statistics Finland. Since 1987, the two basic files are updated annually. These two register-based data sets, together with some other registers, provide panel data on each resident of Finland, from which a 7 per cent random sample bas been taken for this study. The longitudinal data allow us to observe changes of residence and the length of spells remaining in new location. The data set is very rich including hundreds and hundreds of variables for each year. The individual level panel data will be transformed and pooled into a sample of residence spells that began during the period 1988-2001. The maximum of the observed duration of possibly right-censored residence spells if fourteen years. The duration data is interval censored (grouped) – the status of residence spell is only observed at the end of each year. Therefore, discrete time representation for the hazard rate is used. Duration dependence is measured with a set of covariates. Depending on the character of the covariate, the measurement time varies among the variables: some covariates such as sex or parental variables do not change in time, some are measured on year before the residence spell or at the outset of the spell, and the rest such as age, level of education, marital status, family size and regional unemployment are treated as time-varying.

EU enlargement to the less developed countries in Central and Eastern Europe is forcing policy makers to reconsider the role of business subsidies in the EU. For example, to what extent the use of investment subsidies should be allowed in the future? Which regions should be supported? In this paper we study conditions under which investment subsidy is a necessary requirement for project implementation in Finland. Empirical analysis is conducted using micro level data on investment projects of private sector firms. The data set comprises 1,836 projects that received public investment subsidies between 2001 and 2003. Our results show that the necessity of the investment subsidies is strongly dependent on the location of the firm as well as on the size of the firm and the investment project.

In this empirical paper we examine whether or not migration decisions can be affected by individual measures of regional policy. To shed light on the question, we study formation of expected earnings and effect of expected earnings on interregional migration decisions in Finland. We consider how this effect varies among individuals, especially among employees in medical and health care sector and in teaching sector. We generated expected earnings in migration and staying alternatives from an endogenous switching regression. These expected earnings were used as additional explanatory variables in a random parameter logit migration model. In the migration model individual can choose between three alternatives: (s)he can either (i) stay in current region, (ii) migrate to a peripheral region, or (iii) migrate to a growth-centre region. The random parameter logit model allows us to specify the impact of expected earning as a function of occupational dummies and other variables, including a random factor. Our estimation results on a one-percent random sample from the Finnish longitudinal census file indicate that a decision to move is influenced by expected earnings, but the impact is dependent, for example, on occupational and educational group and on region of origin.

This study examines two questions: how does internal migration affect labour market transitions of unemployed workers in 1994 and what are the determinants of migration in 1990 - 95. In both cases multinomial logit model is constructed. Results of the labour market transition model suggest that migration to a growth-centre region increases employment likelihood of the unemployed, while migration to other regions reduces it. Growth-centre migrants are also very unlikely to end their unemployment spell to active labour market programmes. Results of the migration model indicate that education increases likelihood of migration to growth-centre regions but does not affect migration to other regions. Job placements reduce and training program periods increase migration to growth-centre regions. However, they do not influence migration to other regions.

The purpose of this study is to investigate whether positive psychological capital can explain the growth intentions of entrepreneurs. In this analysis, positive psychological capital is measured u...

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