IDEAS home Printed from https://ideas.repec.org/p/ezo/ezppap/wp11.html
   My bibliography  Save this paper

Labour Flexibility and Migration in the EU Eastward Enlargement Context: The Case of the Baltic States

Author

Listed:
  • Tiiu Paas

    () (Institute of Economics, University of Tartu)

  • Raul Eamets

    () (Institute of Economics, University of Tartu)

Abstract

The eastward enlargement of the European Union and the requirements of the European Monetary Union increase pressure for flexibility of labour markets. This paper analyses main changes in the Baltic States’ labour market over the period 1990 - 2001 giving emphasis on the problems of labour market flexibility and migration in the EU eastward enlargement context. Labour market flexibility issues are analysed paying attention to wage flexibility and institutional flexibility (regulations, labour policy, trade unions) while labour migration problems are discussed giving emphasis on pull and push factors of migration and on labour migration experience during the previous stages of EU enlargement. In conclusion labour market flexibility is relatively high in all three Baltic States, being a bit higher in Estonia and lower in Lithuania. In all three states the flexibility has declined in the course of transition. The weakness of the trade unions compared to EU has contributed to the high wage flexibility, while the insufficient funding of labour policies and high share of passive measures might have had negative effect on flexibility. Labour migration from the Baltic States into the EU15 countries will not be significant in the near future. Still the free movement of labour will have pressure on the labour markets of the Baltic States due to possible movement of better-qualified and flexible labour force and due to possible cross-border movement of workers in the Baltic Sea region.

Suggested Citation

  • Tiiu Paas & Raul Eamets, 2002. "Labour Flexibility and Migration in the EU Eastward Enlargement Context: The Case of the Baltic States," Eastward Enlargement of the Euro-zone Working Papers wp11, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Sep 2002.
  • Handle: RePEc:ezo:ezppap:wp11
    as

    Download full text from publisher

    File URL: http://www.ezoneplus.org/archiv/ezoneplus_wp_eleven.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Casale, Giuseppe., 1997. "Collective bargaining and the law in central and Eastern Europe : some comparative issues," ILO Working Papers 993229963402676, International Labour Organization.
    2. Tito Boeri & Giuseppe Nicoletti & Stefano Scarpetta, "undated". "Regulation and Labour Market Performance," Working Papers 158, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    3. repec:ilo:ilowps:322996 is not listed on IDEAS
    4. Ana L. Revenga & Samuel Bentolila, 1995. "What Affects the Employment Rate Intensity of Growth?," Working Papers 9517, Banco de España;Working Papers Homepage.
    5. Bentolila, Samuel & Saint-Paul, Gilles, 1992. "The macroeconomic impact of flexible labor contracts, with an application to Spain," European Economic Review, Elsevier, vol. 36(5), pages 1013-1047, June.
    6. Laurence M. Ball, 1997. "Disinflation and the NAIRU," NBER Chapters,in: Reducing Inflation: Motivation and Strategy, pages 167-194 National Bureau of Economic Research, Inc.
    7. Philippe Aghion & Olivier J. Blanchard, 1994. "On the Speed of Transition in Central Europe," NBER Chapters,in: NBER Macroeconomics Annual 1994, Volume 9, pages 283-330 National Bureau of Economic Research, Inc.
    8. Thomas Straubhaar, 2001. "East-West migration: Will it be a problem?," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 36(1), pages 1-2, January.
    9. Paul Geroski & Paul Gregg & John van Reenen, 1995. "Market Imperfections and Employment," OECD Jobs Study Working Papers 5, OECD Publishing.
    10. repec:sae:niesru:v:155:y::i:1:p:81-89 is not listed on IDEAS
    11. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Report No. 3: Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute for the Study of Labor (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna Zasova & Aleksejs Melihovs, 2005. "Assessment of Labour Market Elasticity in Latvia," Working Papers 2005/03, Latvijas Banka.
    2. Andreas Freytag, 2002. "Estonian labour market and EMU membership - challenges and policy options," Bank of Estonia Working Papers 2002-11, Bank of Estonia, revised 10 Dec 2002.
    3. Gunther Schnabl & Christina Ziegler, 2008. "Exchange Rate Regime and Wage Determination in Central and Eastern Europe," CESifo Working Paper Series 2471, CESifo Group Munich.

    More about this item

    Keywords

    Labour market flexibility; labour migration; Baltic States; eastward enlargement of the European Union;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ezo:ezppap:wp11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stefan Hohenberger). General contact details of provider: http://edirc.repec.org/data/ezonede.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.