This is an English version of the article ”Työmarkkinat Suomessa ja Ruotsissa – ruotsalainen näkökulma”, published in Talous & Yhteiskunta, no 2, 10–17, 2016, issued by the Labour Institute for Economic Research, Helsinki.
Labour market institutions in Finland and Sweden have many features in common. The many similarities have inspired a joint Finnish-Swedish research project on the effects of these institutions. Finland has experienced a prolonged economic downturn and Sweden’s system of wage bargaining has been suggested as a model for Finland. Aggregate wage formation has worked well in Sweden, but relative wage formation markedly less so and the effects of local bargaining are not clear.