Vol. 18, No. 2

Mark Weder:
Indeterminacy Revisited: Variable Capital Utilization and Returns to Scale (pp. 49–56)


This paper presents a one-sector optimal growth model with variable capacity services and production externalities. It uses a new formulation of the endogenous capital utilization rate in which utilization costs appear in the form of variable maintenance expenses. I find that indeterminacy arises at approximate constant returns to scale. This result challenges the viewpoint that indeterminacy is empirically implausible.

(JEL: E32)

Ossi Korkeamäki and Tomi Kyyrä:
The Gender Wage Gap and Sex Segregation in Finland (pp. 57–71)


We investigate how segregation of women and men into certain occupations, industries, firms and jobs within firms is reflected in the gender wage gap in the Finnish manufacturing sector. Using a matched employer-employee data we evaluate wage differentials between men and women in similar occupation with the same employer. This allows us to separate the effects of labour market segregation and differences in human capital and estimate the unexplained within-job wage gap. We find that at least half of the gender wage gap arises from labour market segregation while human capital differences by sex account for less than 10 per cent.

(JEL: J61, J71)

Kristiina Huttunen:
R&D Activity, Exports, and Changes in Skill Demand in Finland (pp. 72–85)


During the 1990’s the Finnish economy experienced a rapid increase in exports and R&D activity. This paper investigates the impact of these phenomena on the skill structure of labour demand using panel data on Finnish establishments for 1988–2001. Worker’s skill level is defined by both education and age. The results indicate that despite the general shift in employment towards the highly educated and older workers, the selected technology and trade indicators – R&D intensity and export share – did not have a significant effect on the changes in the skill demand within manufacturing sector plants in Finland during the period.

(JEL: J21, J23, O33)

Finnish Economic Papers 2/2005