Estonian Human Development Report

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Figure 6.4.6. Ratio of the participation of 20–64- year-olds in adult education during the last 12 months (total number of participants and non-participants in adult education = 100), % 50 40 30 20 10 0 20–29 30–39 40–49 50–64 Source: Statistics Estonia Figure 6.4.7. Companies organizing in-service training (by size) 100 80 60 40 20 0 1999 2005 Source: Statistics Estonia Men Women 10–49 employees 50–249 employees 250 or more employees strict. Therefore, in the context of the strictness of labour legislation, Estonia is relatively regulated or a country with a rigid labour market. At the same time, when we examine enterprise statistics, we see that at the enterprise level many new jobs are created and eliminated each year. There are also relatively active flows of people between various labour market states; however, it is true that the flows have decreased during the last few years. Another argument in defence of the flexibility of our labour market is macroeconomic. In Estonia, neither fiscal nor monetary policies are very active, i.e. they are not used to adjust of cyclical fluctuations in the economy. At the same time, there has to be a buffer for balancing the economy, and according to the general logic of macroeconomic models, this can only be the labour market. At the end of last year (2008) we already saw how unemployment increased in connection with the economic recession. Today, average wages have yet to react but it is probable that average wages in sectors will decline as they did during the 1999 crisis. The second component of flexicurity – an active employment policy – has gotten effective support from EU Structural Fund resources in the last few years, but here too we must recognize our lag compared to average EU levels. On average, Estonia expends 10 times less than the EU on active labour policies (the comparison is based on the percentage of GDP spent on active labour policies). The primary reason is a very restricted target group (only registered unemployed people) and the short duration of the programs. In addition, a relatively large number of unemployed people search for new jobs without the help of the Labour Market Board; therefore it is not possible to provide them with the relevant services. It is also unclear whether the provided services have helped to improve the prospects of the participants in the labour market. As far as the third component of flexicurity i.e. social protection is concerned, Estonia is unfortunately among the least developed EU member states. Our public sector expenditures for social protection are among the lowest in the EU. Our unemployment benefits are also among the lowest. In addition, our unemployment insurance system is relatively rigid – e.g. part-time employment is not encouraged, because people lose all their benefits even when working with very small workloads. Therefore one of the principles of flexicurity – that a person should be guaranteed as large an income as possible during the unemployment period – is not always fulfilled in Estonia. For instance, surveys show that those who have received collective layoff benefits and those who have worked in the public sector are in a better position in comparison to the others. On the other hand, one can always argue that low social expenditures encourage people to return to the labour market. This is also conforms to the liberal economic ideology that has dominated to date, which minimizes the state’s intervention and values individual initiative. However, this ideology is not in agreement with Europe’s social model. One of the components of social protection is the combination of work and family life. In this regard, the greatest problem lies in the deficit of flexible pre-school childcare possibilities. As far as adult education is concerned, relatively few people participate in Estonia compared to other EU countries. Generally, governmental support for adult education only covers about three broader categories of people. These include government officials, teachers, and the registered unemployed, as well as some smaller target groups that are financed in the framework of specific projects. It is also common that more white-collar workers and competitive worker groups receive more training. Less-qualified and older workers as well as other risk groups, who probably need more training, actually receive less. Furthermore, it has not been assessed whether the training provided corresponds to the needs of the labour market. Therefore, you could say that examining the four components of flexicurity, one can only be more or less satisfied with labour market flexibility. In the remaining flexicurity components, Estonia still has much to accomplish in order to feel on a par with the old EU member states and to guarantee the flexible functioning of the labour market. A step in this direction was taken by the new Employment Contracts Act and the trilateral agreement accompanying it, which increases the flexibility of the employment relationship primarily by liberalizing the regulations related to layoffs and thereby improves the position of Estonia in the rankings based on various indices. On the other hand, the new law increases the benefits paid in case of unemployment (unemployment insurance, unemployment benefits) and expands the circle of those receiving unemployment insurance benefits. As a result, the social security of the unemployed increases and reduces the current ine- | 146
quality in social protection. The opportunities for adults to participate in job-related training and in formal education are also improving. The new law and the agreements accompanying it will not bring about any changes with References 1. Ainsaar M., Soo K. (2008) Kohalike omavalitsuste toetus lastega peredele Eestis. Institute of Sociology and Social Policy of the University of Tartu. http://www.rahvastikuminister.ee/public/ ARUANNE_2007_30.pdf 2. Ansip, A 2008 “Andrus Ansip: majandus ei kasva anonüümselt” Postimees 3.10. 3. Arrak, A., et al 2008, Eesti majandus: lõimumine Euroopa ja globaalses kontekstis, Avatar, 2008 4. Council of the European Union (2007). Council decision on guidelines for the employment policies of the Member States http://ec.europa.eu/employment_social/employment_strategy/ pdf/guidelines07_en.pdf 5. Eamets, R., Masso, 2005 J “Labour Market Flexibility and Employment Protection Regulation in the Baltic States” in European Journal of Industrial Relation Vol 11, No 1, 2005, pp 71–90. 6. Employment Contracts Act 299SE. http://www.riigikogu.ee, last viewed on 09.01.2009. 7. Employment Service and Benefits Act. RT I 2005, 54, 430 8. European Commission (2008) Indicators for monitoring the Employment Guidelines including indicators for additional employment analysis. 2008 compendium. European Commission, DG Employment, Social Affairs and Equal Opportunities ec.europa.eu/employment_social/employment_strategy/pdf/ 2008compendium_en.pdf 9. Eurostat (2008) Childcare in the EU in 2006, Eurostat News Release STAT/08/172, 5 December 2008. 10. Eurostat. Electronic database. Tax rate on low wage earners – Unemployment trap. Last viewed on 09.1.2009. 11. Eurostat. Electronic database tables Social benefits by function (% of total benefits) and Total expenditure on social protection - Current prices (% of GDP). Last viewed on 09.01.2009 12. Eurostat. Electronic database. Labour market policy - Public expenditure on labour market policies, by type of action (% of GDP) Last viewed on 09.01.2009 13. European Commission (2006). Employment in Europe 2006. Office for Official Publications of the European Communities. 14. Irish National Training & Employment Authority (2008). Overview Paper on the Individual Learner Plan for Community Employment Participants. An Innovation in identifying, recording and reporting on individual learner activities & preparation for progression. Official Paper. http://pdf.mutuallearning-employment.net/pdf/IE08/Official_paper_IE08.pdf. Viewed on 09.01.2009 15. Kask U., Rummo-Laes T-L., Eomois P-P., Denissov G. (2005) Laps ja sotsiaalne keskkond. Statistics Estonia topical paper, Mai 2005 16. Leetmaa, R., Võrk, A. Eamets, R., Sõstra, K. (2003) Aktiivse tööpoliitika tulemuslikkuse analüüs Eestis. PRAXIS Center for Policy Studies. respect to active labour policies, although in the current economic situation, the expansion of labour market services and the anticipatory provision of training for workers threatened with layoffs would be very necessary. 17. Leetmaa, R., Võrk, A. (2004). Do Post-Soviets Behave According to Search Models? Econometric Analysis of the Effects of Incentives in the <strong>Estonian</strong> Unemployment Insurance System. 18. Leetmaa R., Karu M. (2008) The Provision of Childcare Services in Estonia. External report commissioned by and presented to the EU Directorate-General Employment and Social Affairs, Unit G1 ‘Equality between Women and Men’, March 2008 19. Leppik, L., Võrk, A., Tiit, E., Leetmaa, R. (2004) Euroopa Liidu ühiste pensionieesmärkide mõju Eesti pensionisüsteemile. PRAXIS Center for Policy Studies. 20. Lille, T., Palmet, L.(2006) Presentation project “Puuetega inimseste tööhõive edendamine” final seminar 07.12.2006 21. Masso, J., Eamets, R., Philips, K. (2006), “Job Flows and Worker Flows in the Baltic States: Labour Reallocation and Structural Changes”, in T. Paas and R. Eamets (Eds.), Labour Market Flexibility, Flexicurity and Employment: Lessons of the Baltic States, Nova Science, p 79. 22. Ministry of Labour and Social Inclusion (2008). Vocational Rehabilitation in Norway. Official Paper. http://pdf.mutuallearning-employment.net/pdf/NO08/official_paper_NO08. pdf. Viewed on 09.01.2009 23. Ministry of Social Affairs (2008). Tervis, Töö ja Sotsiaalelu 2007. Tallinn. 24. OECD (2005). From unemployment to work. Paris. 25. National Audit Office of Estonia (2007). Riigi tegevus tööturult tõrjutute tagasitoomiseks tööturule. Tallinn. http://www. riigikontroll.ee/ 26. Statistics Estonia: Tööturg arvudes. 2006. Labour Market in Figures. 27. Turu-uuringute AS (2008). Tööturuameti maine uuring 2008. Tallinn http://213.184.49.171/www/gpweb_est_gr.nsf/Html- Pages/TTA_maine_2008/$file/TTA_maine_2008.pdf 28. Võrk, A., Leppik, L., Leetmaa, R. (2005) Kollektiivsete koondamiste andmete ja praktika analüüs. Final research report. PRAXIS Center for Policy Studies. http://www.praxis.ee/data/ Kol_koondamised_14092005.pdf, Last viewed on 09.01.2009 29. Võrk, A., Paulus, A. (2006) Eesti sotsiaaltoetuste ja maksude mõju inimeste tööjõupakkumise stiimulitele. Research report. PRAXIS Center for Policy Studies. 30. Võrk, A., Leetmaa, R., Paulus, A., Anspal, S. (2007) Tax-benefit Systems in the New Member States and their Impact on Labour Supply and Employment. PRAXIS Working Paper No 26/2007. 31. Võrk, A. Leetmaa, R. (2007). Kollektiivsetele koondamistele reageerimise teenuse tulemuslikkus. PRAXIS Center for Policy Studies. 32. Võrk, A., Karu, M., Tiit, E.-M. (2009) Vanemahüvitis: kasutamine ning mõjud tööturu- ja sündimuskäitumisele 2004- 2007. 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Estonian Human Development Report
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Estonian Human Development Report T
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4.2. Ethnic differentiations in sat
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Preface This year, the Estonian Hum
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CHAPTER 1 Estonian Human Developmen
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Figure 1.1.3. Life expectancy in co
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Figure 1.2.2. Life expectancy at bi
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to reality. The greatest inaccuracy
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Figure 1.2.9. Internal migration ev
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12. Marksoo, A. 1992. “Dynamics o
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Table 1.3.1. PISA 2006 study result
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Table 1.3.2. Number of students in
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1.4. The gross domestic product and
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Figure 1.4.3. Estonian GDP (right a
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1.5. Changes in the Estonian Human
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2.2. Health of Estonian residents i
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Table 2.2.4. Differences in life ex
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Figure 2.4.1. Healthy life years of
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Figure 2.4.4. Various accidents, tr
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2.5. Lifestyle and behaviour as a s
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Figure 2.5.5. Smoking in Estonia in
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Figure 2.6.1. Overview of the compo
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Table 2.6.2. Use of specialized med
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dren. The majority of services are
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Figure 2.8.2. How much a health dis
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2.10. Policy recommendations aimed
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CHAPTER 3 Quality of life and life
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Table 3.2.1. Characteristics of liv
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Table 3.2.4. An assessment of the e
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Figure 3.2.4. Difference in the job
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Table 3.2.6. Agreement with stateme
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Figure 3.3.1. Satisfaction with lif
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Figure 3.3.4. Percentage of people
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Figure 3.4.1. Types of quality of l
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Figure 3.5.1. Percentage of teenage
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Figure 3.5.4. Percentage of respond
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Arieh A., Conti C., Kutsar D., Nicg
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Figure 3.6.2. Subjective quality of
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Pieper, A. Sixsmith, Care related q
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Figure 3.7.1. The placement of Euro
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Figure 4.2.1. Life satisfaction by
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Table 4.2.1. Factors forming genera
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Annexes Annex 4.2.1. Socio-demograp
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Figure 4.3.1. Changes in the assess
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Figure 4.3.4. Attitudes of the Esto
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olds considered themselves to be pa
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Table 4.4.3. Agreement of the Russi
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Page 100 and 101: Figure 4.5.4. Certainty of Estonian
Page 102 and 103: mote equal opportunities. At the (e
Page 104 and 105: CHAPTER 5 Quality of life in a cons
Page 106 and 107: Figure 5.2.1. GDP and AIC per capit
Page 108 and 109: Figure 5.2.3. Distribution of consu
Page 110 and 111: Figure 5.2.4. Indexes of environmen
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Page 114 and 115: Figure 5.3.3. Comparison of types o
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Page 120 and 121: Table 5.4.3. Young people’s asses
Page 122 and 123: Figure 5.4.6. Time spent on the con
Page 124 and 125: Table 5.4.6. The perception of prob
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Page 156 and 157: Table 7.1. Factors that favour and
Page 158 and 159: Table 7.2. Potential economic devel
Page 160 and 161: Authors Chapter 1 Ene-Margit Tiit,
Page 162 and 163: Margit Keller (PhD) is a Senior Res
Page 164 and 165: Special prizes Estonian Human Devel
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Page 172 and 173: Honorable mentions Estonian Human D
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Estonian Human Development Report

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