Earlier this year, Statistics Finland reported that the average monthly salary for full-time workers in the country has grown by €100 ($108) since 2013, reaching €3,300 ($3,600). Additionally, a correlation between the level of income and education was reported. An average Finnish PhD reportedly earns €4,900 ($5,280), against a monthly salary of €2,600 ($2,800) for people with only secondary education.
A native of Helsinki, Bengt Holmström, who is a former director of Nokia, has been living in the US for about 40 years, yet remains a Finnish citizen. Today, he is an economist at the Massachusetts Institute of Technology. Holmström rose to fame due to his theory of developing contracts for top managers, in a bid to achieve better performance.
Holmström's "informativeness principle" is a model for how the CEO's contract should link their pay to information relevant to their performance, after due regard has been paid to weighing risks against incentives. For this theory, Holmström was awarded the 2016 Nobel Prize in Economics together with fellow economist Oliver Hart. This award is of particular importance today, given the international debate about excessive remuneration packages given to top managers and board members.
Remarkably, Holmström also criticized the single European currency, which according to him "inhibited Finland's development." According to him, the downturn in the world economy had a negative impact on Finland due to its pronounced export orientation.