Kerly Espenberg "Inequalities on the labour market in Estonia during the Great Recession" | University of Tartu

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  • View all other units

Contacts of UT units

Faculty of Arts and Humanities
Faculty phone: 
+372 737 5341
Faculty address: 
Jakobi 2, rooms 116–121, 51005 Tartu
  • Dean's Office
    Faculty phone: 
    + 372 737 5341
    Faculty address: 
    Jakobi 2, rooms 116–121, 51005 Tartu
  • Institute of History and Archaeology
    Faculty phone: 
    +372 737 5651
    Faculty address: 
    Jakobi 2, 51005 Tartu
  • Institute of Estonian and General Linguistics
    Faculty phone: 
    +372 737 5221
    Faculty address: 
    Jakobi 2, 51005 Tartu
  • Institute of Philosophy and Semiotics
    Faculty phone: 
    +372 737 5314
    Faculty address: 
    Jakobi 2, rooms 309–352, 51005 Tartu
  • Institute of Cultural Research
    Faculty phone: 
    (+372) 737 5223
    Faculty address: 
    Ülikooli 16, 51003 Tartu
  • School of Theology and Religious Studies
    Faculty phone: 
    +372 737 5301
    Faculty address: 
    Ülikooli 18–310, 50090 Tartu
  • College of Foreign Languages and Cultures
    Faculty address: 
    Lossi 3, 51003 Tartu
  • Viljandi Culture Academy
    Faculty phone: 
    +372 435 5232
    Faculty address: 
    Posti 1, 71004 Viljandi
Faculty of Social Sciences
Faculty phone: 
+372 737 5957
Faculty address: 
Lossi 36, 51003 Tartu
  • Dean's Office
    Faculty phone: 
    + 372 737 5900
    Faculty address: 
    Lossi 36, 51003 Tartu
  • Institute of Education
    Faculty phone: 
    +372 737 6440
    Faculty address: 
    Salme 1a–29, 50103 Tartu
  • Johan Skytte Institute of Political Studies
    Faculty phone: 
    +372 737 5582
    Faculty address: 
    Lossi 36–301, 51003 Tartu
  • School of Economics and Business Administration
    Faculty phone: 
    +372 737 6310
    Faculty address: 
    Narva mnt 18, 51009 Tartu
  • Institute of Psychology
    Faculty phone: 
    +372 737 5902
    Faculty address: 
    Näituse 2, 50409 Tartu
  • School of Law
    Faculty phone: 
    +372 737 5390
    Faculty address: 
    Näituse 20–324, 50409 Tartu
  • Institute of Social Studies
    Faculty phone: 
    +372 737 5188
    Faculty address: 
    Lossi 36, 51003 Tartu
  • Narva College
    Faculty phone: 
    +372 740 1900
    Faculty address: 
    Raekoja plats 2, 20307 Narva
  • Pärnu College
    Faculty phone: 
    +372 445 0520
    Faculty address: 
    Ringi 35, 80012 Pärnu
Faculty of Medicine
Faculty phone: 
+372 737 5326
Faculty address: 
Ravila 19, 50411 Tartu
  • Dean's Office
    Faculty phone: 
    +372 737 5326
    Faculty address: 
    Ravila 19, 50411 Tartu
  • Institute of Biomedicine and Translational Medicine
    Faculty phone: 
    +372 737 4210
    Faculty address: 
    Biomeedikum, Ravila 19, 50411 Tartu
  • Institute of Pharmacy
    Faculty phone: 
    +372 737 5286
    Faculty address: 
    Nooruse 1, 50411 Tartu
  • Institute of Dentistry
    Faculty phone: 
    +372 731 9856
    Faculty address: 
    Raekoja plats 6, 51003 Tartu
  • Institute of Clinical Medicine
    Faculty phone: 
    +372 737 5323
    Faculty address: 
    L. Puusepa 8, 50406 Tartu
  • Institute of Family Medicine and Public Health
    Faculty phone: 
    +372 737 4190
    Faculty address: 
    Ravila 19, 50411 Tartu
  • Institute of Sport Sciences and Physiotherapy
    Faculty phone: 
    +372 737 5360
    Faculty address: 
    Jakobi 5–205, 51005 Tartu
Faculty of Science and Technology
Faculty phone: 
+372 737 5820
Faculty address: 
Vanemuise 46–208, 51014 Tartu
  • Dean's Office
    Faculty phone: 
    +372 737 5820
    Faculty address: 
    Vanemuise 46–208, 51005 Tartu
  • Institute of Computer Science
    Faculty phone: 
    +372 737 5445
    Faculty address: 
    Narva mnt 18, 51009 Tartu
  • Estonian Marine Institute
    Faculty phone: 
    +372 671 8902
    Faculty address: 
    Mäealuse 14, 12618 Tallinn
  • Institute of Physics
    Faculty address: 
    W. Ostwaldi 1, 50411 Tartu
  • Institute of Chemistry
    Faculty phone: 
    +372 737 5261
    Faculty address: 
    Ravila 14a, 50411 Tartu
  • Institute of Mathematics and Statistics
    Faculty phone: 
    +372 737 5860
    Faculty address: 
    Narva mnt 18, 51009 Tartu
  • Institute of Molecular and Cell Biology
    Faculty phone: 
    +372 737 5027
    Faculty address: 
    Riia 23, 23b–134, 51010 Tartu
  • Tartu Observatory
    Faculty phone: 
    +372 737 4510
    Faculty address: 
    Observatooriumi 1, Tõravere, 61602 Tartumaa
  • Institute of Technology
    Faculty phone: 
    +372 737 4800
    Faculty address: 
    Nooruse 1, 50411 Tartu
  • Institute of Ecology and Earth Sciences
    Faculty phone: 
    +372 737 5835
    Faculty address: 
    Vanemuise 46, 51003 Tartu
Institutions
  • Library
    Faculty phone: 
    +372 737 5702
    Faculty address: 
    W. Struve 1, 50091 Tartu
  • Youth Academy
    Faculty phone: 
    +372 737 5581
    Faculty address: 
    Uppsala 10, 51003 Tartu
  • Institute of Genomics
    Faculty phone: 
    +372 737 4000
    Faculty address: 
    Riia 23b, 51010 Tartu
  • Museum
    Faculty phone: 
    +372 737 5674
    Faculty address: 
    Lossi 25, 51003 Tartu
  • University of Tartu Natural History Museum and Botanical Garden
    Faculty phone: 
    +372 737 6076
    Faculty address: 
    Vanemuise 46, 51003 Tartu
Support Units
  • Administrative Office
    Faculty phone: 
    +372 737 5606
    Faculty address: 
    Ülikooli 18a, 51005 Tartu
  • Centre for Entrepreneurship and Innovation
    Faculty phone: 
    +372 737 6339
    Faculty address: 
    Lossi 3, III floor, 51003 Tartu
  • University Office in Tallinn
    Faculty phone: 
    +372 737 6600
    Faculty address: 
    Teatri väljak 3, 10143 Tallinn
  • Estates Office
    Faculty phone: 
    +372 737 5137
    Faculty address: 
    Ülikooli 18a, 51005 Tartu
  • Finance Office
    Faculty phone: 
    +372 737 5125
    Faculty address: 
    Jakobi 4, 51005 Tartu
  • Grant Office
    Faculty phone: 
    +372 737 6215
    Faculty address: 
    Lossi 3, III floor, 51003 Tartu
  • Information Technology Office
    Faculty phone: 
    +372 737 6000, IT-help: +372 737 5500
    Faculty address: 
    Ülikooli 18a, 51005 Tartu
  • Human Resources Office
    Faculty phone: 
    +372 737 5145
    Faculty address: 
    Ülikooli 18, rooms 302 and 304, 50090 Tartu
  • Internal Audit Office
    Faculty address: 
    Ülikooli 18-244, 51005 Tartu
  • Marketing and Communication Office
    Faculty phone: 
    +372 737 5687
    Faculty address: 
    Ülikooli 18, rooms 102, 104, 209, 210, 50090 Tartu
  • Office of Academic Affairs
    Faculty phone: 
    +372 737 5620
    Faculty address: 
    Ülikooli 18, 50090 Tartu
  • Procurement Office
    Faculty phone: 
    +372 737 6632
    Faculty address: 
    Ülikooli 18a, 51005 Tartu
  • Rector's Strategy Office
    Faculty phone: 
    +372 737 5600
    Faculty address: 
    Ülikooli 18, 50090 Tartu
  • Student Council
    Faculty address: 
    Ülikooli 18b, 51005 Tartu
  • University of Tartu Press
    Faculty phone: 
    +372 737 5945
    Faculty address: 
    W. Struve 1, 50091 Tartu
Other Units
  • University of Tartu Academic Sports Club
    Faculty phone: 
    +372 737 5371
    Faculty address: 
    Ujula 4, 51008 Tartu
  • Tartu Student Village
    Faculty phone: 
    +372 740 9959
    Faculty address: 
    Narva mnt 25, 51013 Tartu
  • Tartu Students’ Club
    Faculty phone: 
    +372 730 2400
    Faculty address: 
    Kalevi 24, 51010 Tartu
  • Tartu University Hospital
    Faculty address: 
    L. Puusepa 1a, 50406 Tartu
  • University of Tartu Foundation
    Faculty phone: 
    +372 737 5852
    Faculty address: 
    Ülikooli 18, 50090 Tartu
  • View all other units

Kerly Espenberg "Inequalities on the labour market in Estonia during the Great Recession"

Date: 
09.04.2013 - 14:15 to 16:00

The public defence of Kerly Espenberg's Ph.D thesis "Inequalities on the labour market in Estonia during the Great Recession" will take place on April 9, 2013 at 14.15 in room B306, Narva Rd 4, Oeconomicum, University of Tartu

Supervisors:
Kaia Philips (Ph.D, Associate Professor), University of Tartu, Estonia
Jaan Masso (Ph.D, Senior Research Fellow), University of Tartu, Estonia

Opponents:
Ellu Saar (Ph.D, Professor), Tallinn University, Estonia
Wiemer Salverda (Ph.D, Professor), University of Amsterdam, Netherlands

Summary:
Discourse on the concept of inequality dates back to ancient times. The recent crisis, which has also been named the Great Recession, was the most severe of the recessions Estonia has experienced. As a small open economy with a small domestic market, Estonia is vulnerable to external shocks. The global financial crisis and the slump in private capital flows affected the country heavily. The crisis had a severe effect on the Estonian labour market, the most severe in EU comparison after Latvia.

In the thesis the focus is on inequalities on the Estonian labour market during the financial crisis (years 2008-2010). The aim of the thesis is to ascertain which labour market groups have been most vulnerable since the onset of the recession in Estonia and which changes occurred in inequalities on the labour market during the Great Recession. It is analysed which adjustment mechanisms were used in the Estonian labour market to cope with the crisis, which was the role of institutions and which were differences between industries and based on gender, age, nationality and educational level. In addition, a theoretical system of inequalities on the labour market is developed that draws together the employment and remuneration side of such inequalities.

In the international comparison Estonia is highlighted as a best practice example where country implemented proper measures and enabled to overcome the crisis despite its small size and severe effects of the crisis. The results of the analysis indicate that Estonian labour market remained highly flexible during the Great Recession. All three adjustment mechanisms - reductions in employment, wages and working hours - were used. Compared to other EU countries Estonia clearly stands out, since employment, hours and wage adjustments occurred in the very early phase of the recession and the negative consequences for the labour market were particularly severe. In the beginning of the crisis the increase in employment was one of the highest in EU comparison in Estonia. In Estonia wage decreases were much more widespread than in other EU countries. Adjustment via working hours occurred mostly in the beginning of the recession.

In Estonia's public sector, austerity was mainly achieved via internal devaluation, mostly via pay cuts during the recession. Employment and hours decreases were used less. Wages were reduced in many Estonian public sector organisations as early as 2008-2009, which was exceptional in Europe. In the private sector the adjustment mechanisms were remarkably different across sectors. In those sectors which suffered the most during the recession, all three adjustment measures were used. Wage inequality measured as a P90/P10 ratio remained largely unchanged during the recession, indicating that those at the upper and lower ends of wage distribution experienced wage cuts to a similar extent. Middle-wage earners, however, were hit harder during the recession. Labour market institutions (minimum wage, trade unions) had a limited influence of inequalities on the labour market during the recession, the main reason for changes was sectoral and occupational segregation.

Analysis has shown that inequalities emerging on the Estonian labour market during the global financial crisis can be divided into two groups. The first group includes those inequalities that were short-lived and diminished during the recovery period. The second group of inequalities includes those that demand appropriate policy attention now. The experience of the recession indicated that like other EU countries the most vulnerable groups on the labour market in Estonia were youth, non-Estonians and the lower-educated. During the recovery the share of long-term unemployed has increased the most among elderly. Proper policy measures need to be applied in order to bring these people back to the labour market.

In addition to mapping general labour market developments during the crisis, one group was more specifically surveyed in the thesis: university graduates. It is often claimed that Estonia's higher education system 'overproduces' social sciences graduates and that their labour market prospects are gloomy compared to those of real sciences graduates. However, the results of our analysis do not support this hypothesis. The unemployment remained low in both groups even during the crisis, but contrary to popular belief, a social sciences education is worth more on the labour market than one in real sciences in terms of wages, at least at the master's/doctoral level and shortly after completing studies. The wage differences are partly explained by differences in work experience: compared to real sciences students, those in the social sciences are more engaged with the labour market while studying, and if we exclude extramural students the wage gap is in favour of graduates of real sciences.

The gender wage gap between university graduates is about the same in magnitude as the overall gender wage gap in Estonia (25%). The gender pay gap varies considerably across fields of study undertaken - from close to zero in services to more than 40% in health and welfare. Occupational segregation is the most important factor explaining part of the wage gap, but the role of the traditions and norms inherent in society also play an important role. Therefore, changing attitudes is necessary.

Organizer: 
Location: 
Narva mnt 4, room B306
Event category: