About
I am a university lecturer in the Department of Economics at the University of Turku. My research interests include macroeconomics, economic growth, and firm dynamics.
My CV
Email: eeanma@utu.fi
Working Papers
Economic Growth through Worker Reallocation: The Role of Knowledge Spillovers
Abstract
I explore the role of knowledge diffusion among producers as a driver of productivity growth. By estimating a reduced form model with Finnish employer-employee data, I find evidence that employing workers from more efficient establishments enhances productivity. To understand the aggregate impact of the finding, I develop an endogenous growth model that incorporates the transmission of knowledge through worker reallocation. The calibrated model reveals that knowledge spillovers can increase aggregate productivity growth by 0.19 percentage points and significantly impact output. Moreover, I establish that this mechanism can exacerbate the adverse impact of firing costs on aggregate outcomes.
Uncertainty, Misallocation and the Life-cycle Growth of Firms
with Oskari Vähämaa
Reject and Resubmit, Review of Economic Dynamics
Abstract
We propose a decomposition of static misallocation that distinguishes between idiosyncratic uncertainty and ex ante misallocation generated by tax-like distortions. Using profits-to-wage-bill ratios and value-added-to-wage-bill ratios, we can identify the two sources of misallocation. In the comprehensive Finnish firm-level data, uncertainty accounts for 41% of aggregate misallocation and has a strong decreasing age-dependent trend in it. We show that our results are quantitatively consistent with a life-cycle model of firm growth that incorporates learning. According to the dynamic model, uncertainty suppresses output by 8-12%, while ex ante misallocation has a 40% negative effect on output.
Furloughs, Employment, and Worker Reallocation in Normal Times
with Niku Määttänen & Oskari Vähämaa
Abstract
Are furlough schemes useful under normal business cycle conditions? We address this question using administrative data from Finland, where such a scheme has long existed, and a model of firm dynamics with hiring and layoff costs, frictional unemployment, and firm-level wage rigidity. Furloughs provide firms with flexibility by allowing temporary workforce reductions at a lower cost than layoffs followed by rehiring. Yet in the model, it is optimal to eliminate the furlough option, as it does little to facilitate reallocation from low productivity to high productivity firms and does not reduce layoffs much. In contrast, a small layoff tax improves welfare by balancing employment gains against reduced productivity.
Work in Progress
Earnings Dynamics with On-the-job Learning
with Heikki Kauppi & Timo Virtanen