Developments in Long-Term Unemployment during Economic Revival: the Case of Estonia

Ülle Marksoo ()
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Ülle Marksoo: Institute of Ecology and Earth Sciences, University of Tartu

No 161, Working Papers from School of Economics and Business Administration, Tallinn University of Technology

Abstract: The aim of this article is to analyse changes in the nature and scope of long-term unemployment in Estonia against the background of positive economic development in recent years. The analysis covers the period 1997-2006 including changes in the structure of long-term unemployment and an overview of the active labour market policy measures for mitigating long-term unemployment. The analysis is based on the Estonian Labour Force Survey micro data showing that against the background of positive economic growth, in addition to short-term unemployment, also long-term unemployment as well as inactivity has decreased rapidly. However, a problem is still the high share of long-term unemployment among the unemployed – 48%, and the high share of those who have been seeking for work more than two years. A logistic regression indicated that in the greatest risk of long-term unemployment in Estonia are older population, non-Estonians, people with lower educational level and rural unemployed people. The main strategy for curbing long-term unemployment used in Estonia today is the case management method, which enables to approach each unemployed person personally and offer him/her suitable labour market measures for increasing his/her competitiveness.

Keywords: labour market; long-term unemployment; active labour market measures (search for similar items in EconPapers)
JEL-codes: J64 J68 (search for similar items in EconPapers)
Date: 2007

Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 33-51

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