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Interethnic Wage Variation in the Helsinki Area

Author

Listed:
  • Jan Saarela

    (Department of Social Sciences, Åbo Akademi University, Finland)

  • Fjalar Finnäs

    (Institutet för Finlandssvensk Samhällsforskning, Åbo Akademi University)

Abstract

This paper compares wage income of Swedish-speaking and Finnish-speaking employees in the Helsinki metropolitan area. Longitudinal data are analysed with random-effects tobit models. We find that Swedish-speaking males on average have 17 per cent higher wages than Finnish-speaking males. Two thirds of this wage gap can be attributed to characteristics differences, particularly education and age. For females the wage difference is very small. The findings echo previous research in the sense that they point out a favourable labour market performance of the Swedish-speaking minority in Finland and that differences between language groups are larger among males than among females.

Suggested Citation

  • Jan Saarela & Fjalar Finnäs, 2004. "Interethnic Wage Variation in the Helsinki Area," Finnish Economic Papers, Finnish Economic Association, vol. 17(1), pages 35-48, Spring.
    • Handle: RePEc:fep:journl:v:17:y:2004:i:1:p:35-48
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    References listed on IDEAS

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    Cited by:

    1. Camilla Härtull & Jan Saarela, 2019. "Ethno-Linguistic Affiliation and Income Poverty in Native Households with Children: Finland 1987–2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 403-424, July.

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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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