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The Lack of Wage Setting Power of Estonian Trade Unions?

Author

Listed:
  • Raul Eamets

    (Faculty of Economics and Business Administration, University of Tartu)

  • Epp Kalaste

    (PRAXIS)

Abstract

The current article presents the concept of labour market flexibility and its role in transition economies. The role of unions in labour market flexibility is described in order to assess the role of unions in Estonia. We assume that the wage differential reflects the power of trade unions to shape the working conditions in the workplace. Therefore the most common approach is followed for estimating the wage differential i.e. analysing personal, occupation and industry characteristics. It appears that Estonian trade unions do not have enough bargaining power to result in a positive wage gap for union members. This result was expected because trade union density and coverage rates are very low in Estonia.

Suggested Citation

  • Raul Eamets & Epp Kalaste, 2004. "The Lack of Wage Setting Power of Estonian Trade Unions?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 5(1), pages 44-60, December.
    • Handle: RePEc:bic:journl:v:5:y:2004/2005:i:1:p:44-60
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    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2004.10840417
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    References listed on IDEAS

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    Cited by:

    1. Jaan Masso & Vladyslav Soloviov & Kerly Espenberg & Inta Mierina, 2019. "Social convergence of the Baltic states within the enlarged EU: Is limited social dialogue an impediment?," Chapters, in: Daniel Vaughan-Whitehead (ed.), Towards Convergence in Europe, chapter 2, pages 35-77, Edward Elgar Publishing.
    2. Anne Lauringson, 2010. "Measuring Union Bargaining Power In The Estonian Public Sector," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 72, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Vladimir Gligorov & Anna Iara & Michael Landesmann & Robert Stehrer & Hermine Vidovic, 2008. "Western Balkan Countries: Adjustment Capacity to External Shocks, with a Focus on Labour Markets," wiiw Research Reports 352, The Vienna Institute for International Economic Studies, wiiw.
    4. Jaan Masso & K. Espenberg & Anu Masso & I. Mierina & Kaia Philips, 2013. "GINI Country Report: Growing Inequalities and their Impacts in the Baltic States Estonia, Latvia, Lithuania," GINI Country Reports baltics, AIAS, Amsterdam Institute for Advanced Labour Studies.

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    More about this item

    Keywords

    trade union; negotiation power; labour market flexibility;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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