scholarly journals Labour Market Flexibility and Employment Protection Regulation in the Baltic States

2004 ◽  
Author(s):  
Raul Eamets ◽  
Jaan Masso
2011 ◽  
Vol 2 (3) ◽  
pp. 43-64
Author(s):  
Agnieszka Ertman

Flexible labour market can be defined as the market with capability to adapt to changing economic conditions so as to keep high employment rate, unemployment and inflation low and ensure continued growth in real incomes. Labour market flexibility has a significant influence on employment level in the economy. Some economists believe that higher level of protection in the labour market is accompanied with lower employment rates in the economy. Low labour market flexibility is a contemporary problem of many economies. Lack of flexibility in this market is often associated with regulation of labour market in such areas as social insurance, minimum wage, legislation relating to employment protection and the strength of trade unions. EPL index (Employment Protection Level) is a basic measure indicating degree of labour market regulation. The index was created by the OECD experts and is used for international comparisons. The article aims to examine a degree of labour markets flexibility in OECD countries and identify position of Poland compared to other OECD members. TOPSIS method (Technique for Order Preference by Similarity to an Ideal Solution) is applied to achieve the goal. This method consists in creating synthetic index and calculates the distance of each object between the ideal solution and negative ideal solution, and then linear ordering of researched objects. Synthetic indicator of labour market flexibility was calculated using 11 variables, among which institutional variables such as restrictiveness of employment protection, tax wedge, trade union density or percentage of part time workers in total employment dominated. Synthetic index also covers variables describing labour market performance e.g. employment rate of young and older workers or long term unemployment rate as they indicate a speed of labour market’s responsiveness on external changes.


2018 ◽  
pp. 68-115
Author(s):  
Jaan Masso ◽  
Maryna Tverdostup ◽  
Inta Mierina ◽  
Kerly Espenberg

2021 ◽  
Vol 23 ◽  
pp. 8-25
Author(s):  
Laima Okunevičiūtė-Neverauskienė ◽  
Arūnas Pocius ◽  
Sandra Krutulienė

The study analyses the unemployment situation of socially vulnerable groups in the Baltic States in the context of the European Union. The analysis of the unemployment rate is based on gender, age and duration of unemployment. Statistical analysis identified the most vulnerable groups in the labour market and those most sensitive to economics fluctuations. The study also evaluated the relationship of economic growth with employment of these groups. The research highlighted that in the Baltic countries, the global financial crisis more significantly affected vulnerable groups, mainly because of the impact of the crisis in 2009–2010. Hence these results differ from the general trend in unemployment rate of the target groups in the countries of the European Union. Unemployment rate at the EU level did not coincide with similar trends observed in the target groups in the Baltic States. In the Baltic States, the unemployment rate of the target groups started to grow earlier and faster than in the EU countries and it started to decrease much earlier than the EU unemployment rate indicators. In addition, in the Baltic countries, the growth of target group unemployment was significantly higher than the EU average. The fast and volatile growth of unemployment within the mentioned target groups shows that they had difficulties adapting to dramatically worsening conditions in the labour market in the Baltic States. The current pandemic situation in comparison to the global financial crisis of 2009–2010 has a less negative effect. The study revealed that unemployment rates in the Baltic States were close to the EU average. The research results also showed that men and the youth are sensitive to economic fluctuations in the Baltic States. On the one hand, unemployed men and the youth tend to more easily enter the labour market during economic upturns. On the other hand, in an economic downturn, these jobseekers face significant integration difficulties into the labour market and become more socially vulnerable. It is important to note that long-term unemployed people belong to the most vulnerable groups. People with low skills or qualifications face multiple barriers to labour market integration. Long-term unemployment leads to a loss of income, an erosion of skills, a higher incidence of health problems and increased household poverty.


2016 ◽  
Vol 19 (4) ◽  
pp. 5-26 ◽  
Author(s):  
Eugeniusz Kwiatkowski

This paper aims to identify the effects of the global crisis on employment and unemployment in the EU countries and indicate factors which may explain the differentiated response of labour markets to this crisis. Analyses show that the global economic crisis affected the labour markets of EU countries, causing declines in employment and increases in unemployment. The greatest declines in employment were observed in Greece, Estonia, Ireland, Spain, Iceland, and Portugal, and the lowest in Austria, Belgium, the Netherlands, and Poland. The greatest increase in unemployment occurred in the Baltic countries, Greece, Spain, and Portugal. The analyses indicate that the scale of changes in employment and unemployment during the global crisis depends on such factors as: the depth of the demand shock and scale of GDP adjustments; the degree of openness of the economy; the scope of alternative labour market adjustments and some labour market institutions, especially employment protection legislation and the share of fixed-term employment contracts. The analyses indicate that the smallest declines in employment (and correspondingly the smallest increases in unemployment) during the crisis can be expected in countries where the EPL indexes and share of those employed on fixed-term employment contracts in total employment are moderate.


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