Republic of Estonia: Selected Issues

January 13, 2017

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Format: Chicago

Republic of Estonia: Selected Issues, (USA: International Monetary Fund, 2017) accessed December 23, 2024

Summary

This Selected Issues paper examines the impact of fast unit labor cost (ULC) growth in Estonia. ULCs in Estonia have now reached a level at which further unmitigated wage growth risks material damage to competitiveness and income convergence prospects with western Europe. This highlights the importance of making Estonia’s pro-productivity policies a success, but in the nearer term the onus is on mitigating excessive wage growth because in this area, Estonia, together with the other Baltics, distinguishes itself from the rest of central and eastern Europe. Tax policy can provide short-term relief.

Subject: Employment, Labor, Labor productivity, Production, Productivity, Total factor productivity, Wages

Keywords: Competitiveness assessment, CR, Employment, Europe, Firm, Firm age, Global, IMF staff calculation, ISCR, Labor, Labor productivity, Labor productivity, Productivity, Pro-productivity policy, Statistics Estonia, Total factor productivity, ULC growth, Via-a-vis firm, Wages, Western Europe

Publication Details

Pages:

41
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/010
Stock No:

1ESTEA2017002
ISBN:

9781475565911
ISSN:

1934-7685

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