| Preface and Acknowledgements | 6 |
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| Contents | 7 |
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| Introduction and Summary | 10 |
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| 1 The Basic Issues | 10 |
| 2 The Articles in this Volume | 12 |
| References | 17 |
| International Product Market Integration and Wage Bargaining | 18 |
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| Abstract | 18 |
| 1 Introduction | 18 |
| 2 Trends in Integration | 21 |
| 3 Intra-lndustrial Trade and Wage Formation | 25 |
| 4 Risk and Insurance | 38 |
| 5 Concluding Remarks | 40 |
| References | 41 |
| Comment on Torben M. Andersen's Paper | 44 |
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| References | 46 |
| Wage Formation under Low Inflation | 48 |
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| Abstract | 48 |
| 1 Introduction | 48 |
| 2 The Effect of Downward Nominal Wage Rigidity ( DNWR) | 50 |
| 3 The Effect of Inflation on Staggered Nominal Wage Contracts | 56 |
| 4 Incomplete Labour Contracts and Nominal Wage Growth | 57 |
| 5 Multi-Level Bargaining and the Co-ordination of Wage Setting | 58 |
| 6 Near-Rational Wage and Price Setters | 59 |
| 7 Empirical Evidence | 59 |
| 8 Will Society Adapt? | 61 |
| 9 Concluding Remarks | 63 |
| References | 63 |
| Comment on Steinar Holden's Paper | 68 |
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| The Finnish Bargaining System: Actors' Perceptions | 70 |
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| Abstract | 70 |
| 1 Introduction | 71 |
| 2 The Finnish Wage Bargaining System | 72 |
| 3 Central Results of the Survey | 74 |
| 4 Conclusions | 91 |
| References | 92 |
| Productivity, Incentives and Relative Wages | 94 |
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| Abstract | 94 |
| 1 Introduction | 95 |
| 2 Productivity and Wage Distribution in Finland in Comparison to the US | 97 |
| 3 A Model of Labour Market Regulation and Relative Wages | 99 |
| 4 Incentives and Wage Formation | 103 |
| 5 A Note on Incentives, Individual Effort and Wage Bargaining | 107 |
| References | 110 |
| Local Bargaining and Employers' Co-operation Options | 112 |
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| Abstract | 112 |
| 1 Introduction | 112 |
| 2 Data and Methods | 113 |
| 3 Employers' Desire for Local Bargaining | 117 |
| 4 Concluding Remarks | 126 |
| References | 127 |
| Appendix | 127 |
| Do Centralized Bargains Lead to Wage Moderation? Time- Series Evidence from Finland | 130 |
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| Abstract | 130 |
| 1 Motivation | 130 |
| 2 Empirical Results | 133 |
| 3 Discussion | 140 |
| References | 141 |
| Finnish Wage Bargaining - Actual Behaviour and Preferences | 142 |
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| Abstract | 142 |
| 1 Introduction | 142 |
| 2 The Choice of Bargaining Level | 143 |
| 3 Actual Behaviour in Past Decades | 146 |
| 4 Opinions on Bargaining and Their Relation to Earlier Behaviour | 152 |
| 5 Conclusion | 158 |
| References | 159 |
| Is the Labour Share Too Low in Finland? | 162 |
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| Abstract | 162 |
| 1 Introduction | 162 |
| 2 Equilibrium Labour Income Share ( ELIS) | 164 |
| 3 ELIS in Finland: The Importance of Relative Prices | 166 |
| 4 ELIS in Finland: The Importance of Labour-Saving Technical Change | 168 |
| 5 ELIS and Imperfect Competition in the Product Market | 169 |
| 6 ELIS and NAIRU | 171 |
| 7 What Was the Situation in 2001 ? | 173 |
| References | 177 |
| Bargaining on Pensions: The Finnish Pension Reform of 2001- 2002 | 178 |
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| Abstract | 178 |
| 1 Introduction | 178 |
| 2 The Finnish Pension System and the Role of the Social Partners | 179 |
| 3 Effects of the 2001-2002 Pension Reform | 182 |
| 4 Concluding Remarks | 190 |
| References | 190 |
| Appendix: FOG Model | 191 |
