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Labour Markets In The Baltic States During The Crisis 2008-2009: The Effect On Different Labour Market Groups

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Author Info

  • Jaan Masso
  • Kerly Krillo

Abstract

The economies of the Baltic States have been among the most severely affected by the global economic crisis that started in 2008. This study focuses on the impact of the crisis on the labour markets of the Baltic States with particular emphasis on how the impact varies across different labour market segments. Labour input has been decreased primarily through external adjustment (employment cuts), though part-time employment has emerged as well; wages have been flexible downward throughout the different parts of the economy. Adjustments can be seen both in the private and public sectors (the latter especially in Latvia). At the level of individual companies, quite different adjustment strategies can be seen. Similar to other European countries, males have suffered especially, but also youth and Estonia’s and Latvia’s substantial non-native (Russian-speaking) populations. Wage inequality has somewhat increased and that seems to be primarily due to the increasing premium for education and differences in wage reductions across sectors and firms. During the crisis, expenditures on both passive and active measures have grown significantly, also thanks to the use of EU funds.

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Bibliographic Info

Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 79.

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Length: 86 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:mtk:febawb:79

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Related research

Keywords: labour market; economic crisis; employment dynamics; wage differentials; Baltic States;

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References

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  1. Jan Babeck� & Philip Du Caju & Theodora Kosma & Martina Lawless & Julián Messina & Tairi R��m, 2010. "Downward Nominal and Real Wage Rigidity: Survey Evidence from European Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(4), pages 884-910, December.
  2. Burgess, Simon & Lane, Julia & Stevens, David, 1995. "Job Flows, Worker Flows and Churning," CEPR Discussion Papers 1125, C.E.P.R. Discussion Papers.
  3. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
  4. Zuzana Brixiova & Laura Vartia & Andreas Woergoetter, 2009. "Capital Inflows, Household Debt And The Boom Bust Cycle In Estonia," William Davidson Institute Working Papers Series wp965, William Davidson Institute at the University of Michigan.
  5. Joanna Tyrowicz & Stanisław Cichocki, 2010. "Employed Unemployed? On Shadow Employment During Transition," Working Papers 2010-05, Faculty of Economic Sciences, University of Warsaw.
  6. Kerly Krillo & Jaan Masso, 2010. "The Part-Time/Full-Time Wage Gap In Central And Eastern Europe: The Case Of Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 65, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  7. Leping, Kristian-Olari & Toomet, Ott, 2008. "Emerging ethnic wage gap: Estonia during political and economic transition," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 599-619, December.
  8. Kenneth A. Kriz & Jaanika Meriküll & Alari Paulus & Karsten Staehr, 2007. "Why Do Individuals Evade Payroll And Income Taxation In Estonia?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 49, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  9. Zuzana Brixiova, 2009. "Labour Market Flexibility in Estonia: What more Can be Done?," OECD Economics Department Working Papers 697, OECD Publishing.
  10. Enrico Marelli & Marcello Signorelli & Joanna Tyrowicz, 2012. "Crises and Joint Employment–Productivity Dynamics: A Comparative Perspective for European Countries," Comparative Economic Studies, Palgrave Macmillan, vol. 54(2), pages 361-394, June.
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Cited by:
  1. Irina Alina Popescu, 2013. "Workforce Professional Skills Development in Times of Economic Crisis," Management, University of Primorska, Faculty of Management Koper, vol. 8(2), pages 139-155.
  2. Mező, Júlia & Bagi, Ágnes, 2012. "Crisis management in the Baltic States," MPRA Paper 40366, University Library of Munich, Germany.
  3. Lilas Demmou, 2012. "Matching Skills and Jobs in Estonia," OECD Economics Department Working Papers 1007, OECD Publishing.

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