Job polarization in itself is already widening the pay gap: the rise in the share of low-paid and, above all, high-paid jobs inevitably increases the income gap. However, the absence of wage polarization in Finland suggests that wages have hardly responded to the declining demand for mid-wage labour. This may have further decreased the number of middle-wage tasks.
Job polarization will increase the demand for low-wage jobs, like many services, but will only create jobs if they are not priced out of the market.9 Last but not least, Nordic comprehensive social security is an important part of our growth policies, since it makes structural change more socially acceptable.