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Employment and wage dynamics in Estonia, 1989‐951

Author

Listed:
  • Rivo Noorkôiv
  • Peter F. Orazem
  • Allan Puur
  • Milan Vodopivec

Abstract

This study monitors the effects of economic transition on wages and employment in a former Soviet Republic. Estonia's case is of particular interest because of its early adoption of relatively free labour market policies. Relative wages for the highest educated groups rose for all age groups. There were also rapid increases in returns to job experience, particularly at young ages. Increasing wage dispersion across human capital groups was accompanied by narrowing wage dispersion within human capital groups. Relative wages rose in sectors which gained relative employment, while they fell in shrinking sectors. In addition, there were large flows of labour between shrinking and growing sectors, suggesting that labour market equilibrating mechanisms developed very rapidly in Estonia.

Suggested Citation

  • Rivo Noorkôiv & Peter F. Orazem & Allan Puur & Milan Vodopivec, 1998. "Employment and wage dynamics in Estonia, 1989‐951," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 6(2), pages 481-503, November.
    • Handle: RePEc:bla:etrans:v:6:y:1998:i:2:p:481-503
    DOI: 10.1111/j.1468-0351.1998.tb00060.x
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    References listed on IDEAS

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    1. Chase, Robert S., 1995. "Women's Labor Force Participation During and After Communism: A Study of the Czech Republic and Slovakia," Center Discussion Papers 28405, Yale University, Economic Growth Center.
    2. Commander, Simon*Liberman, Leonid*Ugaz, Cecilia*, 1993. "The behavior of Russian firms in 1992 : evidence from a survey," Policy Research Working Paper Series 1166, The World Bank.
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    1. Horie, Norio & Iwasaki, Ichiro & 岩﨑, 一郎, 2022. "Returns to Education in European Emerging Markets: A Meta-Analytic Review," RRC Working Paper Series 95, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    2. Sunnee Billingsley & Allan Puur & Luule Sakkeus, 2014. "Jobs, careers, and becoming a parent under state socialist and market conditions: Evidence from Estonia 1971-2006," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 30(64), pages 1733-1768.
    3. Tyrowicz, Joanna & van der Velde, Lucas, 2018. "Labor reallocation and demographics," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 381-412.
    4. Martin Klesment & Allan Puur, 2010. "Effects of education on second births before and after societal transition: Evidence from the Estonian GGS," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 22(28), pages 891-932.
    5. Campos, Nauro F. & Dabusinskas, Aurelijus, 2009. "So many rocket scientists, so few marketing clerks: Estimating the effects of economic reform on occupational mobility in Estonia," European Journal of Political Economy, Elsevier, vol. 25(2), pages 261-275, June.
    6. Tamar Khitarishvili, 2010. "Assessing the Returns to Education in Georgia," Economics Working Paper Archive wp_608, Levy Economics Institute.
    7. Jiri Balcar, 2013. "Soft Competencies in Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 88-99, April.
    8. Joanna Tyrowicz & Lucas van der Velde, 2014. "Can We Really Explain Worker Flows in Transition Economies?," Working Papers 2014-28, Faculty of Economic Sciences, University of Warsaw.

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