Regional earnings differences in estonia: The influence of demographic characteristics

Lisa Wilder and Mary Ellen Benedict

International Advances in Economic Research, 2002, vol. 8, issue 3, 214 pages

Abstract: Recent events indicate that the Republic of Estonia is on the fast track for catching up with its Western European neighbors. However, the country's successful performance has not translated to improved economic conditions for all regions of Estonia. This paper examines the nature of this regional diversity as it relates to the labor market. A statistical analysis indicates that age, educational, and nationality distributions vary across regions, causing earnings to vary as well. Policy initiatives to change the nature of these distributions, either through migration or educational incentives in regions with low earnings, or social policy changes to enhance the well-being of those living in the low-earnings regions, may provide more opportunity for those left behind in the transition process. Copyright International Atlantic Economic Society 2002

Date: 2002
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DOI: 10.1007/BF02297958

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