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Labour market adjustments in Estonia during the global crisis

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  • Sandrine Levasseur

    (Observatoire français des conjonctures économiques)

Abstract

This article provides an assessment of labour market adjustments occurring in Estonia during the global crisis. As part of the so-called internal devaluation, the strategy followed was very successful in shrinking the unit labour costs, thus helping Estonian enterprises to gain international competitiveness. The whole gamut of tools available in terms of flexibility was used, at least in the worst time of the financial crisis: massive lay-offs, reduced working time and wage cuts. At mid-2011, Estonia stood as one of the most dynamic EU country to recover with exports growth. On the social side, however, the track record is not as positive: the purchasing power of workers has been reduced and unemployment still remains strong and persistent despite the economic recovery.

Suggested Citation

  • Sandrine Levasseur, 2011. "Labour market adjustments in Estonia during the global crisis," Sciences Po publications 2011-25, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09iak4591pm
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    Cited by:

    1. Kukk, Merike, 2016. "How did household indebtedness hamper consumption during the recession? Evidence from micro data," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 764-786.

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    More about this item

    Keywords

    Labour market; crisis; Estonia; internal devaluation;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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