This Selected Issues paper investigates the possible contribution of activation strategies—in a broad sense—to improve employment rates in Finland. It summarizes recent labor market developments in Finland, and investigates respectively the limitation of current unemployment and disability benefit schemes. The paper identifies possible strategies to activate recipients, and focuses on strategies to boost youth employment rates. The paper also discusses the possibility of using in-work benefit systems to create incentives to work at the low-skilled end of the labor market.
IMF Staff Country Reports