Research
My research and policy briefs have been featured in both international (The Economist, Wired) and Finnish (e.g. YLE, Helsingin Sanomat) media outlets. In addition, I’ve presented my work at multiple academic conferences, as well as at the Ministry of Economic Affairs and Employment in Finland.
You can find a list of my research also on my Google Scholar profile.
Working Papers
Winners and Losers of Technology Grants: Evidence on Jobs and Skills [link]
(with Aapo Stenhammar and Joonas Tuhkuri)
Under revision for the Quarterly Journal of Economics
Abstract: We present novel evidence on the impact of EU technology subsidies on employment and skill demand in Finnish SMEs, 1994–2018. The subsidies funded new machinery, including robots and CNC machines. Comparing closely matched grant winners and losers, we find that receiving a grant increased employment without changing skill composition. Using machine learning on application texts, we match firms by their evaluation reports, analyze their plans, and show that subsidies primarily supported expansion, such as launching new products, rather than automating work. In contrast, analysis of a broader sample of manufacturing firms outside the program reveals that IT investments are more strongly associated with skill upgrading than machinery investments, consistent with different technologies relating to skill demand differently. Our findings indicate that these grants created opportunities for non-college-educated workers.
Work in Progress
Business Development Grants in Disruptive Times
(with Otto Kässi and Olli Ropponen)
Abstract: We study the labor market impacts of Finland’s initial COVID-19 subsidy program, aimed at mitigating the pandemic’s economic fallout. Using a comprehensive and novel dataset, alongside a judge-leniency instrumental variables design, we analyze the effects of the subsidies on both firm and worker levels. Our results indicate that the program increased the wage sum and decreased unemployment risk in treated firms. However, it also led to a reduction in labor productivity, potentially impeding creative destruction. These findings underscore the need to consider potential productivity drawbacks when designing industrial policies during economic crises.
Policy Briefs
The Effects of Covid-related Business Subsidies in Finland (in Finnish) [link]
(with Olli Ropponen, Heli Koski, Otto Kässi, Nelli Valmari, and Ilkka Ylhäinen). February 2024.
Business Finland COVID-19 Support Funding – What Was Achieved, and at What Cost? (in Finnish) [link]
(with Otto Kässi and Olli Ropponen). December 2023.
Did Digitalization Increase the Resilience of Societies During the COVID-19 Pandemic? (in Finnish) [link]
(with Otto Kässi, Jyrki Ali-Yrkkö, and Mika Pajarinen). March 2023.
Are Global Value Chains Changing? (in Finnish) [link]
(with Jyrki Ali-Yrkkö and Mika Pajarinen). February 2023.
Policy Brief: New Evidence on the Effect of Technology on Employment and Skill Demand (in Finnish) [link]
(with Aapo Stenhammar and Joonas Tuhkuri). April 2022.
In Search of Upcoming Supply Chain Surprises: The World Export Market Shares of Belarus, Russia and Ukraine [link]
(with Jyrki Ali-Yrkkö and Petri Rouvinen). March 2022.
The Significance of Russia for Finnish Companies (in Finnish) [link]
(with Jyrki Ali-Yrkkö and Aki Kangasharju). March 2022.