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Unemployment and Labour Mobility in Estonia: Analysis Using Duration Models

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  • Marit Hinnosaar

Abstract

The current paper analyses unemployment and labour movements between labour market statuses in the period of January 1997 to July 2000 using data from the Estonian Labour Force Surveys. The paper is motivated by the hypothesis that in the beginning of transition in Estonia high labour mobility and low unemployment rate seemed to be related. The analysis reveals that in the end of the 1990s labour mobility has decreased substantially in Estonia compared to 1994. The results from the paper indicate that unemployment rate and labour mobility measure have inverse relationship, both in aggregate and disaggregate level. The most mobile groups in Estonian labour market are Estonians, people living in the area of capital Tallinn and people with higher education. Young people also tend to move a lot from job to job. High mobility in case of young workers is accompanied by high number of unemployment incidents, which is captured by the aggregate unemployment rate time series.

Suggested Citation

  • Marit Hinnosaar, 2002. "Unemployment and Labour Mobility in Estonia: Analysis Using Duration Models," Bank of Estonia Working Papers 2002-07, Bank of Estonia, revised 13 Oct 2002.
    • Handle: RePEc:eea:boewps:wp2002-07
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    Cited by:

    1. Rasmus Kattai, 2005. "EMMA - A Quarterly Model of the Estonian Economy," Bank of Estonia Working Papers 2005-12, Bank of Estonia, revised 12 Dec 2005.
    2. Urmas Sepp & Raoul Lättemäe & Martti Randveer, 2002. "The History and Sustainability of the CBA in Estonia," Macroeconomics 0212002, University Library of Munich, Germany.
    3. Kristjan-Olari Leping, 2005. "Public-Private Sector Wage Differential In Estonia: Evidence From Quantile Regression," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 39, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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