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

Author

Listed:
  • 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.

Suggested Citation

  • Jaan Masso & Kerly Krillo, 2011. "Labour Markets In The Baltic States During The Crisis 2008-2009: The Effect On Different Labour Market Groups," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 79, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  • Handle: RePEc:mtk:febawb:79
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    References listed on IDEAS

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    Cited by:

    1. Mező, Júlia & Bagi, Ágnes, 2012. "Crisis management in the Baltic States," MPRA Paper 40366, University Library of Munich, Germany.
    2. Dorothee Bohle, 2014. "Post-socialist housing meets transnational finance: Foreign banks, mortgage lending, and the privatization of welfare in Hungary and Estonia," Review of International Political Economy, Taylor & Francis Journals, vol. 21(4), pages 913-948, August.
    3. Ludmila Fadejeva & Ieva Opmane, 2016. "Internal labour market mobility in 2005–2014 in Latvia: the micro data approach," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 16(2), pages 152-174.
    4. Sowa, P. Marcin & Butler, James R.G. & Connelly, Luke B., 2014. "Unmet medical needs and health care accessibility in seven countries of Eastern Europe," MPRA Paper 75619, University Library of Munich, Germany.
    5. 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.
    6. Lilas Demmou, 2012. "Matching Skills and Jobs in Estonia," OECD Economics Department Working Papers 1007, OECD Publishing.

    More about this item

    Keywords

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

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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