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Finnish incomes policy as corporatist political exchange: development of social capital and the social wage

Author

Listed:
  • Jaakko Kiander

    (CFO, Ilmarinen Mutual Pension Insurance Company, Finland)

  • Pekka Sauramo

    (Senior Economist, Labour Institute for Economic Research, Finland)

  • Hannu Tanninen

    (Senior Lecturer, University of Eastern Finland, Finland)

Abstract

This article deals with Finnish incomes policy as a special type of political exchange between the social partners and the government. The continuity of this political exchange requires a common ground of values and trust. In the article, these prerequisites are characterized in terms of the concept of social capital. The article also emphasizes the importance of centrally negotiated incomes policy agreements as an important institutional framework within which the Finnish welfare state has evolved. Owing to the traditionally close relationship between centrally negotiated incomes policy agreements and welfare reforms, the end of centrally negotiated incomes policy agreements declared by one social partner – namely, the Confederation of Finnish Industries – is likely to affect not only the manner in which wages are negotiated in the future but also the tradition of political exchange between the social partners and the government. Cet article traite de la politique finlandaise des revenus comme d’un type particulier d’échange politique entre les partenaires sociaux et le gouvernement. La continuité de cet échange politique requiert une base commune de valeurs et de confiance. Dans cet article, ces conditions préalables sont caractérisées en recourant au concept de capital social. L'article souligne également l’importance de la négociation centralisée des accords sur la politique des revenus, en tant que cadre institutionnel important dans lequel se poursuit l’évolution de l’État-providence finlandais. En raison de la relation traditionnellement étroite entre les accords de politique des revenus issus d'une négociation centralisée, d’une part, et les réformes de l’État-providence, d’autre part, la fin de ces accords de politique des revenus issus d’une négociation centralisée, proclamée par un partenaire social – la Confédération des industries finlandaises –, devait affecter non seulement la manière dont les salaires seront négociés dans l’avenir, mais aussi la tradition de l’échange politique entre partenaires sociaux et gouvernement. Der vorliegende Beitrag befasst sich mit der finnischen Lohn- und Gehaltspolitik, die auf einer besonderen Form des politischen Austausches zwischen den Sozialpartnern und der Regierung beruht. Die Konti-nuität dieses politischen Austausches setzt eine Basis gemeinsamer Werte und des Vertrauens voraus, die wir als “Sozialkapital†bezeichnen. Ferner wird darauf hingewiesen, dass die zentral ausgehandelten Abkommen über die Lohn- und Gehaltspolitik einen wichtigen institutionellen Rahmen bilden, in dem sich der finnische Wohlfahrtsstaat entwickelt hat. Traditionell besteht in Finnland eine enge Beziehung zwischen zentral ausgehandelten Lohnabkommen und sozialen Reformen. Die Erklärung eines Sozialpartners – des finnischen Arbeitgeberverbands – keine zentralen Lohnabkommen mehr auszuhandeln, wird somit nicht nur einen Einfluss auf die Lohnverhandlungsmodalitäten haben, sondern auch auf die Tradition des politischen Austausches zwischen den Sozialpartnern und der Regierung.

Suggested Citation

  • Jaakko Kiander & Pekka Sauramo & Hannu Tanninen, 2011. "Finnish incomes policy as corporatist political exchange: development of social capital and the social wage," Transfer: European Review of Labour and Research, , vol. 17(4), pages 515-531, November.
  • Handle: RePEc:sae:treure:v:17:y:2011:i:4:p:515-531
    DOI: 10.1177/1024258911419772
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    References listed on IDEAS

    as
    1. Lucio Baccaro, 2003. "What is Alive and What is Dead in the Theory of Corporatism," British Journal of Industrial Relations, London School of Economics, vol. 41(4), pages 683-706, December.
    2. Asplund, Rita, 2007. "Finland: Decentralisation Tendencies within a Collective Wage Bargaining System," Discussion Papers 1077, The Research Institute of the Finnish Economy.
    3. Jaakko Kiander & Pekka Sauramo & Hannu Tanninen, 2009. "The Finnish incomes policy as corporatist political exchange: development of social capital and the social wage," Working Papers 256, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    4. Anke Hassel, 2003. "The Politics of Social Pacts," British Journal of Industrial Relations, London School of Economics, vol. 41(4), pages 707-726, December.
    5. Mares,Isabela, 2006. "Taxation, Wage Bargaining, and Unemployment," Cambridge Books, Cambridge University Press, number 9780521674119, October.
    6. Mares,Isabela, 2006. "Taxation, Wage Bargaining, and Unemployment," Cambridge Books, Cambridge University Press, number 9780521857420, September.
    7. Pekka Sauramo, 2008. "Does outward foreign direct investment reduce domestic investment? Macro-evidence from Finland," Working Papers 239, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    8. Lancaster, Kelvin, 1973. "The Dynamic Inefficiency of Capitalism," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1092-1109, Sept.-Oct.
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    Cited by:

    1. Tuuli Paukkeri & Terhi Ravaska & Marja Riihelä, 2024. "Examining inequalities: from labour markets to social outcomes in Finland," Fiscal Studies, John Wiley & Sons, vol. 45(2), pages 225-241, June.

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