Labour market activation in Finland in the 1990s: Workfare reforms and labour market flexibilisation

Abstract

Activation measures in Finland have meant the weakening of the level, qualification criteria, coverage, and time limits of social benefits in a way inimical to the post-Second World War Nordic welfare model. These changes have been accompanied by a growth of labour market flexibility, of non-traditional forms of employment, and a widening wage dispersion. This article traces these developments, but also shows that despite changes in social protection arrangements and labour market organisation, labour market demand has not increased and underemployment has remained at a substantial level in the Finnish labour market.