How Estonia's economic transition affected employment and wages (1989-95)
The authors use a retrospective survey of 9,608 individuals, aged 16 to 75, to monitor the effects of Estonia's economic transition on wages and employment. Estonia is an interesting case because of its early adoption of relatively free labor market policies. Estonia's transition led to rapid increases in returns to human capital. Relative wages for the most educated workers rose for all age groups. There were also rapid increases in returns to job experience, especially for younger workers, but declining returns to experience for older workers with little education. Wage dispersion increased across groups categorized for human capital but narrowed within those groups (consistent with the predicted effect of labor mobility on wages for comparably skilled workers). Women lost relative share of employment in most sectors but experienced increasing relative wages. Immigrants lost in both employment and fell in shrinking sectors. Those results were consistent with mobile labor responses to demand shocks, suggesting that mechanisms for equilibrating the labor market developed very rapidly in Estonia.
|Date of creation:||31 Oct 1997|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chase, R.S., 1995. "Women's Labor Force Participation During and After Communism: A Case Study of the Czech Republic and Slovakia," Papers 768, Yale - Economic Growth Center.
- Alan B. Krueger & Jorn-Steffen Pischke, 1992.
"A Comparative Analysis of East and West German Labor Markets: Before and After Unification,"
NBER Working Papers
4154, National Bureau of Economic Research, Inc.
- Alan B. Krueger & Jorn-Steffen Pischke, 1995. "A Comparative Analysis of East and West German Labor Markets: Before and After Unification," NBER Chapters, in: Differences and Changes in Wage Structures, pages 405-446 National Bureau of Economic Research, Inc.
- Krueger, Alan B. & Pischke, Jörn-Steffen, 1992. "A comparative analysis of East and West German labor markets before and after unification," ZEW Discussion Papers 92-11, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Orazem, Peter F & Vodopivec, Milan, 1995.
"Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia,"
World Bank Economic Review,
World Bank Group, vol. 9(2), pages 201-30, May.
- Orazem, Peter F. & Vodopivec, Milan, 1994. "Winners and losers in transition : returns to education, experience, and gender in Slovenia," Policy Research Working Paper Series 1342, The World Bank.
- Orazem, Peter & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," Staff General Research Papers Archive 5270, Iowa State University, Department of Economics.
- Topel, Robert H, 1983. "On Layoffs and Unemployment Insurance," American Economic Review, American Economic Association, vol. 73(4), pages 541-59, September.
- Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
- Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
- Edward J. Bird & Johannes Schwarze & Gert G. Wagner, 1994. "Wage Effects of the Move toward Free Markets in East Germany," ILR Review, Cornell University, ILR School, vol. 47(3), pages 390-400, April.
- Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, 05.
- John Ham & Jan Svejnar & Katherine Terrell, 1993. "The Emergence of Unemployment in the Czech and Slovak Republics*," Comparative Economic Studies, Palgrave Macmillan, vol. 35(4), pages 121-134, December.
- H Lehmann, 1993. "Labour Market Flows and the Evaluation of Labour Market Policies in Poland," CEP Discussion Papers dp0161, Centre for Economic Performance, LSE.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1837. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.