Unemployment and Structural Unemployment in the Baltics
August 19, 2014
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Summary
While the unemployment rate in the Baltics has fallen sharply from its crisis-peaks, it remains close to double digits. This paper estimates the structural component of the jobless rate in the three Baltic countries and analyzes its causes. Our main findings are that the current still elevated levels of unemployment mostly reflect structural factors. We then turn to why structural unemployment is so high. This paper points to skill mismatches, high tax wedges, and unemployment and inactivity traps as potential causes.
Subject: Labor, Labor markets, Labor taxes, Structural unemployment, Taxes, Unemployment, Unemployment rate
Keywords: Baltics, core CPI, crisis dummy, Estonia, internal migration, Labor markets, Labor taxes, Latvia, Lithuania, NAIRU estimate, NAIRU unemployment, Structural Unemployment, structural unemployment rate estimate, Unemployment, unemployment gap, Unemployment rate, WP
Pages:
25
Volume:
2014
DOI:
Issue:
153
Series:
Working Paper No. 2014/153
Stock No:
WPIEA2014153
ISBN:
9781498317207
ISSN:
1018-5941
