• Economic crises and unemployment persistence: Analysis of job losses during the Finnish 1990s recession 

      Verho, Jouko
      VATT Working Papers : 99 (Valtion taloudellinen tutkimuskeskus, 20.11.2017)
      This study estimates the effect of job loss for Finnish workers displaced during a severe recession in the early 1990s. The setting provides a sample of workers of which over 90% experienced unemployment after losing a job ...
    • Political Representation and Effects of Municipal Mergers 

      Harjunen, Oskari; Saarimaa, Tuukka; Tukiainen, Janne
      VATT Working Papers : 98 (Valtion taloudellinen tutkimuskeskus, 18.10.2017)
      We study the effects of municipal mergers using novel geocoded data on public sector jobs, housing transactions and local politicians’ place of residence. We find that total municipal expenditures evolve in the same way ...
    • The timing of puberty and gender differences in educational achievement 

      Koerselman, Kristian; Pekkarinen, Tuomas
      VATT Working Papers : 97 (Valtion taloudellinen tutkimuskeskus, 11.10.2017)
      In this paper, we study the effect of the timing of puberty on educational achievement and examine to what extent the gender differences in the timing of puberty can explain gender differences in achievement. We use British ...
    • The Short- and Long-Term Effects of Graduating During a Recession: Evidence from Finland 

      Päällysaho, Miika Matias
      VATT Working Papers : 96 (Valtion taloudellinen tutkimuskeskus, 05.10.2017)
      This paper uses matched employer-employee panel data on university graduates who obtained a Master’s degree in 1988–2004 to study how facing adverse economic conditions upon graduation affects short- and long-term labor ...
    • Electricity Prices and Consumers' Long-Term Technology Choices: Evidence from Heating Investments 

      Sahari, Anna
      VATT Working Papers : 95 (Valtion taloudellinen tutkimuskeskus, 27.09.2017)
      This paper studies consumers' sensitivity to energy costs at the moment of making a long-term energy technology investment. The analysis exploits within-region variation in local, regulated electricity distribution prices ...
    • Gender Specific Relative Age Effects in Politics and Football 

      Tukiainen, Janne; Takalo, Tuomas; Hulkkonen, Topi
      VATT Working Papers : 94 (Valtion taloudellinen tutkimuskeskus, 05.09.2017)
      The existence of a relative age effect (RAE) is well documented, i.e., those born early in the calendar year perform better at school and sports. We exploit a change in a selection period in youth football and regression ...
    • The effects of tax-deductible reserves on investment incentives 

      Kari, Seppo
      VATT Working Papers : 93 (Valtion taloudellinen tutkimuskeskus, 18.08.2017)
      This paper investigates how tax-deductible reserves affect the incentive to invest. We consider two different variants: a periodization reserve (PER), which allows the firm to defer tax payments for a certain number of ...
    • Targeted Funding, Immigrant Background, and Educational Outcomes: Evidence from Helsinki's “Positive Discrimination” Policy 

      Silliman, Mikko
      VATT Working Papers : 91 (Valtion taloudellinen tutkimuskeskus, 18.08.2017)
      I estimate the impact of a targeted funding policy that provides disadvantaged schools in Helsinki with extra resources for hiring additional staff. Using a differences-in-differences strategy, I identify significant ...
    • The local economic impacts of regeneration projects: Evidence from UK’s Single Regeneration Budget 

      Gibbons, Steve; Overman, Henry; Sarvimäki, Matti
      VATT Working Papers : 92 (Valtion taloudellinen tutkimuskeskus, 15.08.2017)
      We study the local economic impacts of a major regeneration programme aimed at enhancing the quality of life of local people in deprived neighbourhoods in the UK. The analysis is based on a panel of firm and area level ...
    • Firm Responses to an Interest Barrier: Empirical Evidence 

      Harju, Jarkko; Kauppinen, Ilpo; Ropponen, Olli
      VATT Working Papers : 90 (Valtion taloudellinen tutkimuskeskus, 27.06.2017)
      This paper studies the effects of an interest barrier that was introduced in Finland to restrict the profit-shifting opportunities of multinational enterprises (MNEs). We employ full population data of Finnish, Swedish and ...
    • Long-term effects of extended unemployment benefits for older workers 

      Kyyrä, Tomi; Pesola, Hanna
      VATT Working Papers : 89 (Valtion taloudellinen tutkimuskeskus, 31.05.2017)
      This paper examines the long-term effects of extended unemployment benefits that older unemployed can collect until retirement in Finland. We consider a reform that increased the age threshold of this scheme from 55 to 57 ...
    • Housing allowance and rents: Evidence from a stepwise subsidy scheme 

      Eerola, Essi; Lyytikäinen, Teemu
      VATT Working Papers : 88 (Valtion taloudellinen tutkimuskeskus, 31.05.2017)
      This paper studies the effect of housing allowance on rents using discontinuities in the Finnish housing allowance system as a quasi-experimental setting. The stepwise dependence of housing allowance on the floor area of ...
    • Estimating the effects of potential benefit duration without variation in the maximum duration of unemployment benefits 

      Kyyrä, Tomi; Pesola, Hanna
      VATT Working Papers : 87 (Valtion taloudellinen tutkimuskeskus, 31.05.2017)
      This paper examines the effects of unemployment benefit duration in Finland. To overcome the problem that the maximum duration of benefits is the same for all unemployed we exploit two observations. First, despite the ...
    • The spike at benefit exhaustion in the Finnish labor market 

      Kyyrä, Tomi; Pesola, Hanna; Verho, Jouko
      VATT Working Papers : 86 (Valtion taloudellinen tutkimuskeskus, 31.05.2017)
      Many studies have found that the exit rate from unemployment increases in the vicinity of the exhaustion day of unemployment insurance benefits. The extent to which this spike is driven by job search behavior is important ...
    • How do small firms respond to tax schedule discontinuities? Evidence from South African tax registers 

      Boonzaaier, Wian; Harju, Jarkko; Matikka, Tuomas; Pirttilä, Jukka
      VATT Working Papers : 85 (Valtion taloudellinen tutkimuskeskus, 28.04.2017)
      We study the responsiveness of small and medium-sized firms to corporate income taxes using population-wide administrative data from South Africa. We find sizable bunching of firms at the corporate income thresholds where ...
    • The Effects of Relative School Starting Age on Educational Outcomes in Finland 

      Kaila, Martti
      VATT Working Papers : 84 (Valtion taloudellinen tutkimuskeskus, 21.04.2017)
      In Finland, children start school during the calendar year they turn seven years old. This creates a discontinuous jump in school starting age. I utilize a regression discontinuity design and rich register data to study ...
    • Does information increase the take-up of social benefits? Evidence from a new benefit program 

      Matikka, Tuomas; Paukkeri, Tuuli
      VATT Working Papers : 83 (Valtion taloudellinen tutkimuskeskus, 28.12.2016)
      The effectiveness of transfer programs can be significantly reduced if eligible individuals fail to apply for them. In this paper we study the impact of information provision on the take-up of social benefits. We exploit ...
    • The effects of UI benefits on unemployment and subsequent outcomes: Evidence from a kinked benefit rule 

      Kyyrä, Tomi; Pesola, Hanna
      VATT Working Papers : 82 (Valtion taloudellinen tutkimuskeskus, 12.12.2016)
      This paper analyzes the effects of unemployment insurance (UI) benefits on unemployment exits and subsequent labor market outcomes. We exploit a piecewise linear relationship between the previous wage and UI benefits in ...
    • A Note on the Effects of Income-Splitting under Dual Income Tax 

      Kari, Seppo; Ropponen, Olli
      VATT Working Papers : 81 (Valtion taloudellinen tutkimuskeskus VATT, 14.10.2016)
      This paper reconsiders the income-splitting rules of the Nordic dual income tax system, introduced to address the incentives to shift income between labor and capital income tax bases. These rules impute a return on equity, ...
    • Innovation, Competition and Technical Efficiency 

      Berghäll, Elina
      VATT Working Papers : 77 (Valtion taloudellinen tutkimuskeskus VATT, 12.10.2016)
      Contradictory empirical and theoretical evidence on the relationship between innovation and competition has been reconciled in a model that yields an inverted U-shaped curve. I test whether the predictions of the model are ...