Unemployment and Structural Unemployment in the Baltics

Christian Ebeke and Greetje Everaert

No 2014/153, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; Unemployment; Structural Unemployment; Baltics; Estonia; Latvia; Lithuania; NAIRU estimate; NAIRU unemployment; unemployment gap; core CPI; internal migration; crisis dummy; structural unemployment rate estimate; Unemployment rate; Labor taxes; Labor markets (search for similar items in EconPapers)
Pages: 25
Date: 2014-08-19
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Citations: View citations in EconPapers (6)

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