Essays on economics of education and labor markets
Thesis event information
Date and time of the thesis defence
Place of the thesis defence
Linnanmaa, TA105
Topic of the dissertation
Essays on economics of education and labor markets
Doctoral candidate
Master of Science (Economics) Janne Lehto
Faculty and unit
University of Oulu Graduate School, Oulu Business School, Department of Economics, Accounting and Finance
Subject of study
Economics
Opponent
Professor Matti Virén, University of Turku
Custos
Docent Marko Korhonen, Oulu Business School
Essays on economics of education and labor markets
The dissertation consists of four studies, one of which addresses the adoption of technology, while the other three focus on questions related to the economics of education.
Economic literature has shown that the adoption of technology has contributed to rising income inequality since around the 1980s. The first study of the dissertation reverses this perspective by asking whether growing income inequality influences firms’ decisions to adopt new technology. The model developed in the study suggests that increasing inequality may lead to a sharper division between firms that adopt new technologies and those that do not, and to a decline in the relative share of technology-adopting firms. Thus, technology adoption may slow down as a consequence of the income inequality it generates.
The demand for higher education has grown substantially. In the Nordic context, a distinctive feature is that education is free of charge and individuals can apply to higher education throughout their lives. Older applicants therefore compete with younger ones for the same study places, which disrupts the transition from secondary education to higher education. The second study expands the literature on university admissions systems by incorporating this Nordic-specific feature. Using an overlapping generations model, the study shows that increases in tuition fees and entrance exam costs influence application decisions across age and ability groups in a similar direction, but entrance exam costs weigh more heavily on ability, whereas tuition fees weigh more heavily on age. According to the model, education policy decisions are transmitted into the economy relatively slowly.
Some earlier studies emphasize the role of mathematical skills, while others highlight verbal skills in predicting later university success. The third study examines how mathematical and verbal skills affect university performance in Finland. Deepening previous findings, the study shows that mathematical and verbal skills complement each other in predicting university performance.
Students’ exam performance can also be influenced by unexpected factors. Research from high-pollution countries has shown that fine particulate matter emissions impair cognitive performance during exams. The fourth study investigates whether fine particulate matter affects students’ performance in matriculation examinations in Finland, a country with relatively low pollution levels. The results show that fine particulate matter reduces students’ performance in mathematical subjects, but has no effect on performance in verbal subjects.
Economic literature has shown that the adoption of technology has contributed to rising income inequality since around the 1980s. The first study of the dissertation reverses this perspective by asking whether growing income inequality influences firms’ decisions to adopt new technology. The model developed in the study suggests that increasing inequality may lead to a sharper division between firms that adopt new technologies and those that do not, and to a decline in the relative share of technology-adopting firms. Thus, technology adoption may slow down as a consequence of the income inequality it generates.
The demand for higher education has grown substantially. In the Nordic context, a distinctive feature is that education is free of charge and individuals can apply to higher education throughout their lives. Older applicants therefore compete with younger ones for the same study places, which disrupts the transition from secondary education to higher education. The second study expands the literature on university admissions systems by incorporating this Nordic-specific feature. Using an overlapping generations model, the study shows that increases in tuition fees and entrance exam costs influence application decisions across age and ability groups in a similar direction, but entrance exam costs weigh more heavily on ability, whereas tuition fees weigh more heavily on age. According to the model, education policy decisions are transmitted into the economy relatively slowly.
Some earlier studies emphasize the role of mathematical skills, while others highlight verbal skills in predicting later university success. The third study examines how mathematical and verbal skills affect university performance in Finland. Deepening previous findings, the study shows that mathematical and verbal skills complement each other in predicting university performance.
Students’ exam performance can also be influenced by unexpected factors. Research from high-pollution countries has shown that fine particulate matter emissions impair cognitive performance during exams. The fourth study investigates whether fine particulate matter affects students’ performance in matriculation examinations in Finland, a country with relatively low pollution levels. The results show that fine particulate matter reduces students’ performance in mathematical subjects, but has no effect on performance in verbal subjects.
Last updated: 25.8.2025