Finland
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Introduction and OverviewDespite its own unique political and economic history and ethnic roots, Finland shares what is now described as the Scandinavian pattern: it is a generous welfare state with a strong family policy commitment. Government spends a (relatively) high percentage of GDP, it has high social protection (social welfare) expenditures, and related, relatively high taxation levels. Finland has enjoyed remarkable economic growth since World War II and, directly influenced by its neighbors, has developed a welfare state which features universalistic strategies. Finland shows the Scandinavian commitment to the concept of the "people's home", a society in which everyone is precious and should be given opportunity. The concept of the welfare state has essentially been accepted by all political parties, despite some 1990s cutbacks during the economic recession. Policy also is very much influenced by one of the preconditions of the country's economic growth, sometimes the highest (or one of the highest) female labor force participation rates (over 72 percent in 2002) among the pluralistic democracies, much of it (87 percent) full-time. In this context, child and family policy has had strong political support. The need for childcare arrangements has resulted in a rich array of guarantees and options, making Finland's under-3 policy particularly worthy of note. Income supports, childcare options, preventive health services and a generally high standard of living have placed Finland among the top countries in the world in its low infant mortality record. It is almost free of child poverty. And, until the severe economic recession of the early 1990s, it
had committed itself to further improvements in its policies and
programs. Having largely recovered in the late 1990s, it has solidified
core child and family policy, but, according to Taskinen (2003),
has not reestablished all family benefits and services to their
previous levels. The family policy objective is as follows: "to
create a safe environment for children and to guarantee parents
the material and psychological resources to bear and raise children",
ensuring financial support and child care arrangements "to
level out the expenses that children bring" (OECD, 2000b, p.
4). And, we might add, to ensure gender equality. |
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HighlightsClick here to view or print country highlights in pdf format. |
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Government AgenciesIn recent years reorganizations have placed planning and policy development in a single ministry (Social Affairs and Health) combining health and social welfare concerns and joining both income transfers and services. A related National Research and Development Center for Welfare and Health, (STAKES), subsidiary to the Ministry, does developmental and applied research, compiles national statistics, and has some residual administrative responsibilities. The Ministry of Environment is responsible for housing allowances. There is no specialized agency for family and child policy, nor is there an integrated plan. Nonetheless the concept of family policy (to include children) has been widely used in government and in public discussion. Policy initiatives and coordination reside in the Social Affairs and Health Ministry. Implementation of services is assigned to lower tiers, largely the 450 municipalities, which have become particularly important recently, especially with regard to childcare policies. The intermediate provincial level (5 provinces) has also been becoming more important, in a supervisory role, especially in the health and social service fields. Municipalities are responsible for providing social and health
care services; the basic, required services are defined by national
legislation. The central government provides each municipality with
a block grant based on a number of population, health, and economic
variables. This is supplemented by municipal taxes and some user
fees for social and health care services.
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Demographic and Other Social TrendsSalient for family policy are the facts that Finland is a country of 5.2 million people (2000). Of its 1.4 million families, some 635,000 were families with children, an average of 1.8 per family. Children under age 15 constitute 19 percent of the 5.2 million people. Ninety percent of children live in families with two parents. About 19 percent of families with children under 17 were single parent families (1999). Almost 1 percent of children under age 18 are in foster homes or residential institutions. There has been a steady decline in the number of births, continuing in the 1990s, with both a fall in the number of women of childbearing age and a fall in the fertility rate. Yet at 1.73 (2000) Finland's fertility rate is comparatively high for Europe. The age of mother at first delivery is high and the mean age at birth overall is very high. Since the 1970s, Finland-like many European countries-has experienced a significant increase in cohabitation, reaching 20 percent of "families" by 1995. Many cohabiters marry when a child is born. Of all mothers there was a proportionate increase in unmarried mothers from 5 to over 9.2 percent over the 90s (a low rate, comparatively). About 30 percent of all children are born to cohabitating parents. Some 15 percent of children live with single parents. The teen-age abortion rate and the teen-age birth rate are low. Some 70 percent of mothers of young children are in the paid labor force, mostly full-time. Single and married women have similar employment rates, but childless women have lower rates than those with children. Finland, and the other Nordic countries, have the highest female labor force participation rates in the OECD, over 72 percent (2000) and Finish women mostly work full-time. Over 80 percent of couples with children are dual-earners. Fewer single mothers are employed (50 percent). Over 90 percent of single fathers also are employed. Half of all children have two working parents. Finland was the first European country to give women the vote. Along with Japan, Sweden and Norway, Finland leads the world in low infant mortality and has low rates for low birth-weight births. It has the best EU records of dental health in 12 year-olds. There is concern about increased smoking, by 8th and 9th grade, and relatively high rates of use of alcohol and illegal drugs by the same age group, however. Finland's young male suicide rate leads Europe.
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Social ProtectionSalient for family policy are the facts that Finland is a country of 5.2 million people (2000). Of its 1.4 million families, some 635,000 were families with children, an average of 1.8 per family. Children under age 15 constitute 19 percent of the 5.2 million people. Ninety percent of children live in families with two parents. About 19 percent of families with children under 17 were single parent families (1999). Almost 1 percent of children under age 18 are in foster homes or residential institutions. There has been a steady decline in the number of births, continuing in the 1990s, with both a fall in the number of women of childbearing age and a fall in the fertility rate. Yet at 1.73 (2000) Finland's fertility rate is comparatively high for Europe. The age of mother at first delivery is high and the mean age at birth overall is very high. Since the 1970s, Finland-like many European countries-has experienced a significant increase in cohabitation, reaching 20 percent of "families" by 1995. Many cohabiters marry when a child is born. Of all mothers there was a proportionate increase in unmarried mothers from 5 to over 9.2 percent over the 90s (a low rate, comparatively). About 30 percent of all children are born to cohabitating parents. Some 15 percent of children live with single parents. The teen-age abortion rate and the teen-age birth rate are low. Some 70 percent of mothers of young children are in the paid labor force, mostly full-time. Single and married women have similar employment rates, but childless women have lower rates than those with children. Finland, and the other Nordic countries, have the highest female labor force participation rates in the OECD, over 72 percent (2000) and Finish women mostly work full-time. Over 80 percent of couples with children are dual-earners. Fewer single mothers are employed (50 percent). Over 90 percent of single fathers also are employed. Half of all children have two working parents. Finland was the first European country to give women the vote. Along with Japan, Sweden and Norway, Finland leads the world in low infant mortality and has low rates for low birth-weight births. It has the best EU records of dental health in 12 year-olds. There is concern about increased smoking, by 8th and 9th grade, and relatively high rates of use of alcohol and illegal drugs by the same age group, however. Finland's young male suicide rate leads Europe. The following chart summarizes the pattern of child and family expenditures in the late 1990s. Unlike the picture in most countries, the service component more than matches cash benefits.
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Child, Youth and Family Policy RegimesMaternity, Paternity, Parental, and Family LeavesFinland has an 18-week maternity benefit, of which 5 weeks may be taken before confinement and the remainder thereafter. Income replacement is at 70 percent of earnings except for quite-high earners. There also is a 26-week parental leave, all with income replacement of about 70 percent. Wage "replacement" for mothers or fathers on leave, but without labor force attachment, is a set percentage of an average wage. The parental leave is for either parent. There also is a child rearing leave at a flat rate extending until the child is three. A reduced payment is available to a parent who works up to 30 hours. Fathers also may take 6-12 days to help with the new child or older children in the family, plus six more days. In rural areas, under collective bargaining arrangements, local government finances farm labor replacement for the mother while she is on leave. Like all Finish social insurance, these leaves are financed by government (45 percent), employer (35 percent), and employee (13 percent) contributions. The "child-rearing" or "home care" allowance that begins after the leaves and extends until a child is 3 emerged from a debate between those favoring the childcare provisions described above and those who favored financially-aided home care of young children. The "compromise" was to do both. The provision that continues this option is most attractive to relatively low earners or to those two-earner couples whose total income is such that they can tolerate a decrease. The basic home care allowance, currently 3027 Euros annually, provides about 15 percent of an average wage. There is a supplement if the family has more than one child or is low-income, raising it to about 30 percent. Many families use part of the home-care option to extend the parental leave. Time at home caring for a child under age 3 and receiving a home care allowance is considered labor force time so that (since 1991) pension credits also accumulate. Thus the child care and leave provisions of Finland's family policy
offer the richest array available, in a class with -but less generous
than-Sweden and matching but richer than Germany. It is Finland's
explicit response to a pattern in which 81 percent of couples with
children are dual earners and about half of single parents are at
work.
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Early Childhood Education and Care (ECEC)The well-developed, high-quality system has developmental and educational objectives. With high and mostly full-time maternal employment, Finland has built up its childcare guarantees. As of 1990, parents have had unconditional entitlement, whether or not they work, to daycare for children under age 3, and since 1996, parents of all children under school age have had a municipal entitlement, or funds for a private facility (not much used). The home care allowance is the alternative. Compulsory school starts at 7, but since August 2001, local authorities have been required to offer one year of pre-school education to all 6-year olds under either the educational or social welfare system. Of the under-3s, 48 percent were in care by the latest reports, a high coverage rate; for the 3-6's it was 73 percent, typical in the Nordic countries, but not high by continental standards. Most are in care all day. Parent fees vary by income and family size and are waived for those of low income. Parental fees meet only about 15 percent of costs. Most children are in the public system. Parents preferring to remain at home get a modest grant (which-see below-is topped up by some municipalities to help control demand for child care space). Since 1997, parents also have the option of a grant to help pay for in-home care or for private care. Family day care (1/3 of children) may be chosen for the youngest children and is regulated. Most care (all types) is full day but some part-time care and some round-the-clock care is available. A partial care leave and allowance (unpaid reduction of work hours) may be worked out with employers until a child enters school. Finland was part of a 2000 OECD review of ECEC in twelve countries.
Consult the full Finnish report on line at: http://oecd.org/e1s/pdfs/EDSECECDOCA016.
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Family and Child Allowances and Child and Family Tax BenefitsDiscussed under the European rubric of "equalization of burdens", child allowances (to age 17) are intended to ease the pressure that comes with the added costs of raising children. Finland's researchers have frequently focused on the costs of a child. Child allowances are estimated as meeting half the costs of rearing a child. They are tax-free, not means-tested, and increase by a child's ordinal position. The first child brings 1080 Euros annually, the third child, 3978. There is a 403 Euro per year supplement for children of lone parents and also a means-tested supplement for low-income families. Among the Nordic countries (1998), Norway had the highest average child allowance benefits, followed by Finland (and, then, Denmark and Sweden), all in the 900-1400 Euro range, per month. Until 1994, Finland also had tax allowances for those who rear children, and their total costs were estimated at about equal to the costs of child allowances. Unlike the situation in other European countries where conservatives tend to favor the tax exemption route while the center-left, left, and unions favor child allowances, Finland's conservatives advocate for child allowances. This is consistent with the long-term preference of agrarian parties, with a large low-income constituency, for universal benefits. Thus, whereas there has been much public debate in recent years about home care versus day care, child allowances are a given. The home care allowance, described above among the "leaves" is considered among the family allowance benefits. Government meets the entire cost of these allowances, with municipalities responsible for financing home care allowances. Spouses are taxed separately and there are no special family concessions
in the tax system.
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Child SupportA lone parent who is divorced or separated, or who has a child out of wedlock, is entitled to child support from the non-custodial parent. If that support is not paid, or if paternity has not been established, there is a public child maintenance payment (worth about 6 percent of an average wage in 1992) and the municipality undertakes collection from the liable parent. This payment is neither income-tested nor taxable. It is an addition to the child allowance. Of those under 18, 11 percent of Finnish children received such payments in the late 90s, a bit below Norway (12.5 percent), Denmark (15 percent), and Sweden (15.5 percent).
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Other Child Conditioned Income TransfersThe social security system provides for child survivors of workers or spouses caring for children under 18 (or 20, if a student). These are universal benefits that may be supplemented on the basis of an income test for low-income orphans. There is also a disability allowance for non-pensioners, as well as the child allowance for disabled children and the long-term ill. There also are child supplements to unemployment insurance and unemployment assistance. In 1998, 10 percent of single parent households received social assistance.
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Child and Adolescent HealthHealth care expenditures in Finland are below the OECD average but its services are rated favorably in recent studies. The system combines a social insurance system, financed by employer, employee, and government contributions and a public sector (municipal) health services program financed primarily by local and national taxes. There are insurance deductibles and co-payments. The municipal health services are essentially free. Municipalities carry the major responsibility for providing health services. Most Finns are served by the primary health care centers and their hospitals. 94 per cent of pregnant women come for a check-up at the maternity clinic before the end of their fourth month of pregnancy. The check-up is a condition for receipt of the maternity grant. During the course of a normal pregnancy, an expectant mother will attend the clinic 12-15 times, normally to see the public health nurse. A doctor will examine her 2-3 times during the pregnancy. Most health centers offer mothers the opportunity of an ultrasound scan, normally 12-16 weeks into the pregnancy. Home births are rare; 99 per cent of women give birth in a hospital. The role of the child health clinics is to monitor and support children's physical, psychological and social development and where necessary refer them for tests and treatment elsewhere. They also provide support and guidance for the family in bringing up their children and coping with family life. After the birth the public health nurse from the maternity clinic visits the home, and the child and family then transfer and become patients of the child health clinic. The recommendation is that children visit the clinic for a check-up eight times before their first birthday, 1-2-year-olds four times a year, and older children once a year. Children under one year old are examined by a doctor 2-3 times, and the child is thereafter examined once every second or third year until the start of school at 7 years of age, when the school health care service takes over. The clinic also administers the vaccinations provided under the immunization program. The local authorities also are responsible for providing school and student health care in the comprehensive schools, vocational institutions, and upper secondary schools in their area. Health care in the universities and other institutions of higher education is the responsibility of the Student Health Foundation. Comprehensive school pupils receive an average of seven health checks during their school career. Each pupil is examined two or three times by a doctor, the other examinations being carried out by the school nurse. The school nurse also has regular consulting hours in the school during which pupils are free to visit for a consultation. Health education and pupil welfare also form an integral part of the school nurse's work. In many schools they also give lessons in human relationships and sex education. Dental care and psychology and speech therapy services are also included within free school health care provision (Taskinen, 1998, p. 262).
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School-Aged Children: Policies and ProgramsCompulsory school ages are 7 to 16. There is free pre-school for 6's with day care and school components. We have referred above to health care and cash allowances. Also noteworthy is the policy of ensuring each child and youth in a public program a free, hot noon meal each day. Schoolbooks and supplies are free. Finland's educational expenditures are above the OECD mean, at the United States level. As much is the case with regard to the portion of the post-25 population with at least secondary education. Finland also has a strong record of gender equality in education. More women than men have academic degrees (23.7 versus 21.2 percent). Finland was the highest achieving country in PISA 2000. Return to Top
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YouthIf a youth has been in foster care or institutionalized under the child welfare system, the local social welfare board must provide support from the end of custody or foster care (age 18, at the latest, until age 21). Finland leads the European Union in the age (18) at which half of all young people have left the parental home, and -with Denmark- in the percentage of young people, ages 16-29, who are cohabitating (over 40 percent) (Eurostat, 2001, pp. 25-26). While committed in principle to substantial youth participation in all facets of their own affairs and community life, Finnish policy personnel acknowledge that participation goals are "not yet realized." Click here to view in PDF format a table on the ages at which children are legally entitled to carry out a series of acts in EU countries.See Youth Policies section for definition of terms used. Finland was one of the fourteen countries participating in the OECD thematic review, From Initial Education to Working Life - Making Transitions Work . For more detail on the transition to working life in Finland, see OECD's background report on Finland.
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Reconciliation of Work and Family LifeThe multi-option childcare benefits and the maternity-parental-child care leaves and benefits are considered to be responsive to the high labor force participation rates of mothers. In addition, an employed parent in a two-earner family may claim 4 days of leave to remain at home to care for a sick child. There is no statutory income replacement, but about three-quarters of such parents are provided for by collective bargaining arrangements. Although there is low take-up parents may shorten working hours two hours daily or one full day each week to care for school-age children to age 7 with a partial (25 percent) home care allowance. |
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Housing BenefitsAllowances are provided to low-income families who rent or own standard housing and whose costs exceed a fixed percentage. They are based on regional scales, family size, and income and are not taxable. There is a special housing allowance for students. Of families eligible for family allowances in the past decade over 40 percent have been lone-parent families and they have constituted 40-50 percent of housing allowance recipients. Families with children are not homeless in Finland, i.e. they may
be homeless only for a couple of weeks. Then they usually stay with
relatives and friends or the municipal social welfare offices arrange
temporary housing for them for this time either in apartments owned
by the municipality or in hotels. Families with children have priority
when the occupants for social housing are chosen. If families with
children are evicted (because of rent arrears) there usually are
other problems in the family, too. In these cases the children might
be taken into custody or otherwise taken care of by the social welfare
authorities. There are no special shelters for homeless families
in Finland (Finnish Ministry of Social Affairs and Health, 1999).
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ReferencesAlestalo, M. (1994). Finland: The welfare state at the crossroads. In N. Ploug & J. Kvist (Eds.), Recent trends in cash benefits in Europe, (pp. 73-84). Copenhagen: The Danish National Institute of Social Research. Alestalo, M. & Uusitalo, H. (1986). Finland. In P. Flora (Ed.), Growth to limits: The Western European welfare state since World War II, Vol. II. Berlin: Walter De Gruyten. Eurostat. (2001). The social situation in the European Union, 2001. Luxembourg: Office for Official Publications of the European Communities. Finnish Ministry of Social Affairs and Health. (2000a). Early childhood education and care policy in Finland: Background report for OECD thematic review. Helsinki: Author. Finnish Ministry of Social Affairs and Health. (2000b). The Finnish social protection system and its operation in 1995. Helsinki: Author. Finnish Ministry of Social Affairs and Health. (1999). Finnish family policy. Helsinki: Author. Retrieved from the World Wide Web at: http://www.vn.fi/stm/english/index.htm. Kahn, A.J. & Kamerman, S.B. (1994). Social policy and the under-3s: Six country case studies-Finland. New York: Columbia University School of Social Work. OECD. (2000a). From initial education to working life: Making transitions work. Paris: Author. OECD. (2000b). Thematic review of the transition from initial education to working life: Finland background report. Paris: Author. Salmi, M. & Lammi-Taskula, J. (1999). Parental leave in Finland. In P. Moss & F. Deven (Eds.), Parental leave: Progress or pitfall? Brussels: CBGS Publications. Taskinen, S. (2003). The situation of families in Finland. European Observatory on the Social Situation, Demography, and Family. Retrieved April 2003, from the World Wide Web at: http://europa.eu.int/comm/employment_social/eoss/index_en.html. Taskinen, S. (1999). Finland. Family Observer/European Observatory on Family Matters, pp. 28-29. Taskinen, S. (1998). Finland. In J. Ditch, H. Barnes, & J. Bradshaw (Eds.), Developments in national family policies in 1996. Brussels: Commission of the European Communities. Taskinen, S. (1996). Finland. In J. Ditch, H. Barnes, & J. Bradshaw (Eds.), Developments in national family policies in 1995. Brussels: Commission of the European Communities. UNICEF. (2000). Innocenti report card, 1. (Figures 1,2,3).
Florence, Italy: Author. |
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ContactsWashington Embassy
Ministry
European Union Family Observatory National Representative
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