01994cas a2200241 a 4500 AALejournalIMF018887 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484385685 1018-5941 BD-DhAAL BD-DhAAL Poghosyan, Tigran. Regional Labor Mobility in Finland / Tigran Poghosyan. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes regional labor mobility in Finland using two complementary empirical approaches: a VAR proposed by Blanchard and Katz (1992) and a gravity model. The results point to a relatively limited regional labor mobility in Finland compared to the U.S. and to EU peers. The limited regional labor mobility is associated with persistent unemployment differentials across regions. Some impediments to regional labor mobility are exogenous, such as large geographical distances across regions and relatively sparse population density, and explain about 23 percent of the variation in labor mobility. Others can be influenced by policy, such as further increase in wage flexibiltiy and reduction of housing costs. These impediments explain about 60 percent of the variation in labor mobility. Greater regional labor mobility could help reduce regional unemployment differentials, improve job matching efficiency, and remove pressures from regional fiscal redistribution. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2018/252 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/252/001.2018.issue-252-en.xml IMF e-Library