Purchasing power of highly-educated Finns weakest in all EU countries
Finnish gross income about average among EU countries
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The average gross hourly earnings of Finnish wage-earners were near the European Union average in 2000. However, when the impact of taxation and prices is taken into account, the purchasing power of Finnish wage earners falls below the EU average, especially in the higher income groups.
This, in a nutshell, is the main conclusion of a study by researchers Jutta Moisala and Roope Uusitalo of the Labour Institute of Economic Research.
The two examined differences in wages and income in the EU countries in 1996 - 2000. In their study, they used material compiled by the European Community Household Panel (ECHP) concerning wages and income in all EU countries except Sweden.
The researchers noticed that in 2000 the average earnings of highly-educated Finns were the lowest in the EU, after taxes and price levels were taken into account.
If Luxembourg is excluded as an all-round exceptional country, the highest tax- and cost-of-living-adjusted average income for highly educated citizens was in France, closely followed by Ireland and Italy. Even Greece came out slightly ahead of Finland.
The average net hourly income for the whole EU was about EUR 13.50, when adjusted to the price level of the countries in question. For Finns it was slightly under nine euros.
Accordingly, the average income earned by Finland’s highly-educated population was about 71% of the EU average, when purchasing power is taken into account.
The hourly earnings of a French worker with a basic education averaged EUR 8.80 when adjusted to purchasing power, while those of a Finn in the same position were EUR 6.60. In this comparison, Germany, Greece, and Portugal fell behind Finland.
Hourly wages for Finns with a comprehensive school education were about 89% of the EU average.
The study notes that the wages of highly-educated Finns rose more quickly than the EU average in 1996 - 2000. Earnings development for those with a basic education was slower than the EU average in the same period.
During the 5-year period, income differences increased in Finland, and in 2000 Finland was no longer the European country with the most even distribution of income.
Belgium, Austria, The Netherlands, and Denmark all came out ahead of Finland in this respect. Income differences were greater than Finland in the countries of Southern Europe, as well as in Ireland and the UK.
The greatest differences in earnings for men and women were in Germany, while the gender gap was smallest in Italy and Portugal. Finland was at about the EU average in this regard. The researchers pointed out that the higher the percentage of women who work, the smaller the income differences between men and women.
Average weekly working hours were lowest in The Netherlands, at 30 hours, and highest in Greece, where workers put in about 40 hours a week. In Finland the average working week was 37 hours.
The study was financed by AKAVA, the trade union confederation representing employees in academically educated fields.
AKAVA’s head of research, Pekka Immeli, said at the press conference announcing the study that the results confirm the view held by AKAVA, that Finland’s high price and taxation levels have dropped the purchasing power of all wage earners to the bottom end of the EU.
"In Finland, wages in basic tasks requiring little knowledge are clearly better than the EU average, and in work requiring know-how, they are below average", Immeli pointed out.
He warned that if the purchasing power of well-educated Finns is not improved, many could emigrate to other countries where purchasing power is higher.
Helsingin Sanomat
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| 16.4.2004 - TODAY |
 Purchasing power of highly-educated Finns weakest in all EU countries |
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