Executive Summary
Assessment and Recommendations
Chapter 1. Getting the Most Out of Globalisation
-The Benefits and Challenges of Globalisation
-Insufficient Diversification?
-The Stock of Inward FDI is Below the OECD Average
-Outward FDI is Stronger
-Globalisation and the Nordic Model
-Significant Challenges Remain
-Annex 1.A1. Progress in Structural Reform
Chapter 2. Recent Macroeconomic Performance and Fiscal Sustainability
-Recent Macroeconomic Performance Has Been Good
-But Major Challenges in the Labour Market Remain
-Fiscal Indicators Are Positive in the Long-Term
-But Long-Term Fiscal Sustainability Remains a Concern
Chapter 3. Setting Tax Policies that Support the Nordic Model
-Taxation and the Nordic Model
-The Dual Income Tax System as a Response to Globalisation
-How to Optimise the Tax Mix
-Labour Taxation is Too High
-Municipal Taxation Needs Refining
-The VAT Base Could Be Broader
-Corporate and Capital Income Taxation
Annex 3.A1. The Tax System in Brief
Chapter 4. Reforming the Municipal Tax Sector
-Strategies to Raise Productivity Growth in Municipal Services
-The Central Government Should Ensure Better Framework Conditions
Chapter 5. A Better Functioning Labour Market
-Globalisation and Structural Change
-Wage Setting Remains Excessively Rigid
-Labour Matching Problems and Skill Shortages
-The Nordic Model Requires Higher Employment
Annex 5.A1. Part-Time Employment, the Employment Rate, and Total Hours Worked in the OECD
Chapter 6. Making Tertiary Education as Good as Compulsory Education
-The Finnish Education System and the Knowledge Economy
-Delays in the Transition to Tertiary Education are a Major Source of Inefficiency
-Long Study Times also Contribute to the Late Labour Market Availability of University Graduates
-The Supply-Based Systems Has Led to Inefficiencies
-Tuition Fees Could Help to Raise the Quality of Education and Improve Efficiency
-Increasing Numbers of Doctoral Degrees Raise Questions about Quality
Chapter 7. Accessing and Integrating Foreign Labour
-Foreign-Born Workers in Finland
-Meeting Skill Shortages
-Attracting and Keeping Foreign-Born Students
Glossary