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Assessment of Labour Market Elasticity in Latvia

Anna Zasova and Aleksejs Meļihovs
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Anna Zasova: Bank of Latvia

No 2005/03, Working Papers from Latvijas Banka

Abstract: Latvia's accession to the EU and its resolute policy oriented toward a full-fledged participation in the EMU, have highlighted the need for a profound investigation into the country's labour market. A flexible labour market is a key policy instrument for a country in the single currency area to ensure an escape from the adverse effects of asymmetric shocks. Labour market flexibility will determine how efficiently the economy of Latvia will develop in the period following its accession to the EU. The paper deals with flexibility of Latvia's labour market using the dynamics of market indicators and assessing its institutional framework.

Keywords: labour market flexibility; flexibility of wages; institutional framework (search for similar items in EconPapers)
JEL-codes: C22 E24 J20 J50 R23 (search for similar items in EconPapers)
Date: 2005-11-25
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