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The Lack of Wage Setting Power of Estonian Trade Unions?

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Author Info

  • 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.

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Bibliographic Info

Article provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.

Volume (Year): 5 (2004/2005)
Issue (Month): 1 (December)
Pages: 44-60

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Handle: RePEc:bic:journl:v:5:y:2004/2005:i:1:p:44-60

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Keywords: trade union; negotiation power; labour market flexibility;

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References

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  1. David Blanchflower & Alex Bryson, 2002. "Changes over time in union relative wage effects in the UK and the US revisited," NBER Working Papers 9395, National Bureau of Economic Research, Inc.
  2. Layard, Richard & Nickell, Stephen J., 2011. "Combatting Unemployment," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199609789 edited by Eichhorst, Werner & Zimmermann, Klaus F., October.
  3. Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 87(2), pages 160-93.
  4. Tiiu Paas & Raul Eamets & Jaan Masso & Marit Room, 2003. "Labour Market Flexibility And Migration In The Baltic States: Macro Evidences," University of Tartu - Faculty of Economics and Business Administration Working Paper Series, Faculty of Economics and Business Administration, University of Tartu (Estonia) 16, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  5. Nickell, S. & Layard, R., 1997. "Labour Market Institutions and Economic Performance," Papers, Centre for Economic Performance & Institute of Economics 23, Centre for Economic Performance & Institute of Economics.
  6. Blanchard, Olivier & Jimeno, Juan F, 1995. "Structural Unemployment: Spain versus Portugal," American Economic Review, American Economic Association, vol. 85(2), pages 212-18, May.
  7. Lars Calmfors, 1993. "Centralisation of Wage Bargaining and Macroeconomic Performance: A Survey," OECD Economics Department Working Papers 131, OECD Publishing.
  8. Alex Bryson, 2002. "The Union Membership Wage Premium: An Analysis Using Propensity Score Matching," CEP Discussion Papers dp0530, Centre for Economic Performance, LSE.
  9. Boeri, Tito & Brücker, Herbert, 2001. "Eastern Enlargement and EU-Labour-Markets: Perceptions, Challenges and Opportunities," IZA Discussion Papers 256, Institute for the Study of Labor (IZA).
  10. Miller, Paul & Mulvey, Charles, 1996. "Unions, Firm Size and Wages," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 72(217), pages 138-53, June.
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Cited by:
  1. 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, AIAS, Amsterdam Institute for Advanced Labour Studies baltics, AIAS, Amsterdam Institute for Advanced Labour Studies.
  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, Faculty of Economics and Business Administration, University of Tartu (Estonia) 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.

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