University of Jyväskylä School of Business and Economics

This paper presents an aggregate flow portrait of the Finnish labour market by gender. First we document the magnitude and evolution of worker flows in the Finnish labour market, also observing the gender differences within the flows. Second, we characterise the cyclical and dynamic properties of the flows and the implied dynamics of the stocks. We estimate models for the transitions to and from unemployment using a business cycle indicator as the key explanatory variable. These models are used to simulate the labour market responses to an adverse macroeconomic shock. We find that an adverse shock triggers an increase in unemployment and that the effects of the shock differ by gender. These differences most likely stem from the prevailing extensive segregation in the Finnish labour market.