The Post-Enlargement Migration Experience in the Baltic Labor Markets

We use Lithuanian, Latvian and Estonian LFS data (2002-2007) complemented with several other surveys to compare the profile of Baltic temporary workers abroad before and after EU accession with that of stayers and return migrants. Determinants of migration and return, as well as selection issues are discussed. Post-enlargement migrants from all three countries were significantly less educated than stayers. After accession, medium-educated workers were most likely to move, other things equal, and human capital became increasingly less pro-migration over time. Return migrants differ from all movers in many ways and, in particular, are more educated. Although brain drain was not a feature of post-accession Baltic migration, brain waste was: during 2006-2007, the proportion of overqualified among high-educated movers ranged from five out of ten for Latvia to seven out of ten for Lithuania, but it was around one fifth among high-educated stayers in all three countries. We find that the free movement of labor partially introduced in 2004 (and expanded in 2006) for EU citizens, although excluding Baltic non-citizens, brought about significant changes in how ethnicity and citizenship affect workers' mobility. We conclude by discussing migration perspectives in the context of recession.return migrants, Baltic countries, EU enlargement, migration, ethnic minorities

Impact of Globalisation on Industrial Relations

Globalisation means intensified competition, the transfer of investments, production relocation outside of Europe, job losses, unemployment and rapid structural changes. European labour markets are characterised as relatively rigid, with high social security and strong industrial relations (IR). The aim of this study is to find out, how the social partners, governments and researchers interpret the challenges of globalisation on future developments of industrial relations. The research is based on expert foresight survey where IR experts from 34 countries were interviewed. The project looked to the future, to the year 2025 and discussed on what industrial relations and social dialogue would look like after fifteen-twenty years. The main findings convinced that decentralisation of collective bargaining is expected in old member states, while the situation will remain unchanged in majority of the new member states. We can conclude that European level convergence is expected in the area of industrial relation

Creative Destruction and Transition : The Effects of Firm Entry and Exit on Productivity Growth in Estonia

This paper presents one of the first studies of firm demographics in Estonia, particularly, on the processes of firm entry and exit as well as survival analysis of new firms. Also decompositions of productivity change into components consisting of resource reallocation, firm entry and exit, and productivity growth within continuing firms is carried out. Our results, derived from a novel database of the population of Estonian firms, show that firm turnover has been rather high in Estonia during the observed period from 1995 to 2001, resulting from low institutional entry barriers and emergence of the SME sector. The high survival rates for new firms and surviving firms? relatively fast growth could reflect their relatively high productivity compared to incumbent firms and changes in the sectoral structure of the economy. The decomposition of productivity change shows that the high productivity growth has been mostly from within-firm productivity growth (e.g. the adoption of new production technologies and organizational changes), but the reallocation of production factors (especially the exit of low productivity units) has played an important role as well

Job creation and job destruction in Estonia: labour reallocation and structural changes

This article documents and analyses gross job flows and their determinants in Estonia over the years 1995-2001, using a database containing the population of officially registered firms in Estonia (all in all 52,000). Our results show that job creation and job destruction rates have been rather high in Estonia and are comparable to the levels documented for the US. We find that the firm-specific component in job flows excess of employment change had relatively lower importance than in western studies due to the emergence of small and medium-sized enterprises and labour reallocation between the economic sectors. The high inter-sectoral mobility has helped maintain high levels of job flows, while both are high also due to a favourable institutional environment, especially due to low start-up costs and a large share of micro enterprises in Estonia. When investigating job creation and destruction at the firm level by estimating firms' growth equations, we detected a negative effect of their size and age on the growth of firms, especially of domestic firms. The job flows have not decreased recently, although worker flows have dropped. One explanation is provided by labour market institutional framework, while the other one relates to the concept of churning flows (the difference between worker and job flows)

Villem Tamm (10.02.1942 – 31.08.2011). Majandusküberneetikute Õpetaja ja sõber. Mentor und Freund der Wirtschaftskybernetiker

Villem Tamm, who was called also as Tamme Villu or simply Villu, was born on 10th of February 1942 in Viljandi county Kabala. He studied seven years in Villavere school and then in high school in Viljandi. He graduated Tartu State University as „economic cybernetics” (mathematical economists) in 1969. His course mates considered him as a capable and talented person and predicted him successful and fast career as a lecturer and scientist. Villu worked at the Faculty of Economics and Business Administration, University of Tartu, almost 40 years. He started as assistant and continued as senior lecturer, associate professor in the Chair of Economic Cybernetics and Statistics (during the years 1991-1992 he was the head of this chair). During the years 1993-1996 he was professor of statistics and also the head of the Institute of Informatics and Economic Modelling. In the following years he worked as associate professor of statistics and retired in 2007. The new specialisation in the soviet economic education with the name “economic cybernetics” was opened at the Tartu State University in 1967 and there was an urgent need for academic staff who could teach the subjects of specialisation. Villem Tamm was assigned to teach basic principles of “economic cybernetics” and mathematical and statistical methods. He was one of the main lecturers who were teaching the specialisation subjects of “economic cybernetics” and also one of the main supervisors of students’ research papers and Diploma Thesis. He has remarkable contribution in preparation of almost 450 students, who have graduated the specialisation of “economic cybernetics”. In essence he is one of the founders of the new direction in education of economists – “economic cybernetics” - in Estonia. During his career he was teaching different statistical and mathematical planning courses in Estonian and in Russian for stationary students and for Open University students. For those students, who specialised to economic modelling, Villu was teaching subjects like principles of economics prognosis, input-output tables, Leontief’s economic equilibrium models, system analysis in economics, etc. Lot of students from Pärnu and Narva Collage, private universities of Audentes and Veritas can consider him also as their lecturer. Students evaluated him highly as a lecturer, as he was concrete in his taught subjects, he was thought-provoking and the personality to his lectures added his smugly humour. He was innovative and quickly adopted new technics and methods to modernise the teaching process. For example in 1980 he made dozens of dispositive about statistics, prepared punched card test for controlling students’ knowledge. In 2003 together with his colleague he designed a web-based course “Statistics”, which get the first price in the faculty’s competition. In total Villem Tamm has published nine textbooks and voluminous methodological materials for six courses. The way to the candidate (Ph.D) degree was not so quick. He continued his post-graduate studies in 1977 and defended Ph.D thesis (candidate in economics) in 1985. His main research areas have been very diverse: starting from the studies devoted to efficiency and effective use of labour resources, regularity of working processes up to problems and misunderstandings of statistical information. During several decades he was doing research in the field of input-output tables. From his personality Villem Tamm had good leadership abilities and as a head of different structural units he was tolerant, steady and fair leader. He had desire to motivate and direct both students and his colleagues; at the same time being dispassionate in communication and dignified in his behaviour. He was helpful and mindful of others; he had skills to solve complicated situations humanly and peacefully. During his working career he had also to fulfil different administrative obligations. He was 15 years supervisor and leader for different courses, curator of cooperation agreement between economic cybernetics from Vilnius, Latvia and Tartu Universities, member of teaching methodology commission, member of faculty’s council, etc. He was one of the founders of Estonian Statistical Society, alumni society “Hermes”, lecturer of association “Teadus” (“Science”), etc. He was participating in conducting population censuses, where he could implement his statistical knowledge and organiser’s abilities. Since the independence of Estonia he was several times leading the local election commissions during the parliament and local elections. Even if sometimes others could not see active engagement to these named and also to lot of others not mentioned activities, everything was functioning and was done at high quality

Impact of Globalisation on Industrial Relations

Globalisation means intensified competition, the transfer of investments, production relocation outside of Europe, job losses, unemployment and rapid structural changes. European labour markets are characterised as relatively rigid, with high social security and strong industrial relations (IR). The aim of this study is to find out, how the social partners, governments and researchers interpret the challenges of globalisation on future developments of industrial relations. The research is based on expert foresight survey where IR experts from 34 countries were interviewed. The project looked to the future, to the year 2025 and discussed on what industrial relations and social dialogue would look like after fifteen-twenty years. The main findings convinced that decentralisation of collective bargaining is expected in old member states, while the situation will remain unchanged in majority of the new member states. We can conclude that European level convergence is expected in the area of industrial relation