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This study investigates the role of accumulated human capital in how people adapt to shocks and how this is reflected in income dynamics. The analysis is based on detailed monthly administrative data from Estonia between 2016 and 2020, containing more than 800 thousand observations. The results show that people with higher human capital experience less income fluctuation and their potential for income losses is lower. The role of human capital becomes even more significant during a crisis. An important effect of subsidies was also evident during the crisis, when the risk of losing incomes for people with less accumulated human capital would have been even higher if there had been no additional state support in the form of subsidies and benefits. In light of the Covid-19 crisis and its specifics, it is crucial to continuously improve digital skills through education to cope with socio-economic development in the future. [ABSTRACT FROM AUTHOR]

Many countries implemented wage compensation measures during the COVID-19 crisis to alleviate income losses and avoid employment reductions. We focus on the gender dimension of incomes in Estonia, which has been grappling with the highest gender wage gap in Europe, and investigate whether the crisis and related wage compensation may have worsened existing gender imbalances. Using detailed administrative datasets and EUROMOD microsimulation model, we show that the COVID-19 crisis had a significant negative effect on employment income for both men and women, but the wage compensation implemented in 2020 appeared to cushion these effects. Income losses were slightly higher for men, but the cushioning effect of the compensation was higher for women. Overall, income-related gender disparities did not change significantly during the crisis. Still, the wage compensation measure has contributed to preventing income-related gender disparities increasing further, particularly in the hotels and restaurants sector and wholesale and retail trade sector. [ABSTRACT FROM AUTHOR]

For a comprehensive understanding of the changing and complex migration patterns in Europe, both quantitative and qualitative analyses are needed. In this paper we complement the studies on migration patterns of East-West migration by qualitatively analysing Estonian migration to Finland. The aim of the paper is to analyse the migration histories of Estonian migrants in Finland with a focus on the meaning and consequences of these patterns on an individual level but also on the effect of geographical proximity on migration patterns. The results bring forth the individual level gains and losses of migration and show that geographical proximity between the home and host country is conducive to more incomplete migration patterns. Our results also suggest that incomplete migration may have a positive effect for the home country as migrants continue to be consumers in their home country and relieve the pressure on its social system. [ABSTRACT FROM AUTHOR]

This study examines the changes in emigration from Estonia, focusing on differences in the level of education of migrants, shedding more light on East-West migration, in particular the migration of skilled labour. We used anonymous individual-level data for all emigrants from the register-based Estonian Emigration Database compiled by Statistics Estonia for the period 2000-2008. The analysis shows that Estonia suffered no significant loss of skilled labour from Estonia during this period. There is also evidence that emigration has spread into a wider range of population groups, including the less educated, since Estonia joined the European Union in 2004. [ABSTRACT FROM AUTHOR]

The paper aims to investigate the research question whether the US 2008 crisis spilled over contagiously to the Baltic States as small open economies. In order to examine the evidence of financial contagion as a systematic component of financial risks in the case of the Baltic States, we employ several testing methodologies like correlation coefficients based methods adjusting also with possible heteroskedasticity and ARCH-GARCH framework. The results are somewhat mixed. On the one hand, stock returns' correlations between US and Baltic States increased during crisis times, confirming the financial contagion hypothesis. On the other hand, volatility has not spilled over from US to Estonia, Latvia and Lithuania, neither have volatility spillovers become stronger after the crisis hit. [ABSTRACT FROM AUTHOR]

The paper gives some new insights on the subject of financial contagion using the methodology of meta-analysis. We show that traditional qualitative literature review is not the proper way to summarise empirical findings of financial contagion and we use meta-analytical tools instead. The results of the meta-analysis show that on average asset market correlations have increased during turbulent periods, but the increase is rather moderate. When correlation coefficients are adjusted for the presence of heteroskedasticity, the increase is considerably smaller but still statistically significant. The crises are different in their contagiousness but the level of development of destination country seems not to play significant role whether crises spread over or not. [ABSTRACT FROM AUTHOR]

The paper aims to offer some empirical insights into regional disparities in sectoral structure and GDP per capita in the case of the Estonian counties. In order to elaborate on the aggregated indicators of the Estonian counties' sectoral structure and to explore the relations between sectoral structure and GDP per capita as a proxy of economic wealth, the method of principal component in combination with regression analysis is applied. The results of empirical analysis confirm the validity of the hypothesis that regional disparities in GDP per capita are remarkably affected by the sectoral structure of the counties' economy. Additionally to sectoral structure, the location of a county, measured by the distance between the capital city and counties' centre, has a significant impact on GDP per capita. There is a coreperiphery structure with high income levels in the capital region (Harjumaa) and low income levels in peripheral regions. The divergence in regional GDP levels may indicate the concentration of production inputs and development of sectoral structure in regions, where economies are functioning more efficiently. [ABSTRACT FROM AUTHOR]

The article analyzes the regional income disparities and convergence in Estonia, a new member state in the European Union (EU). It presents a theoretical and methodological framework for exploring regional income disparities and convergence. It compares the country's regional disparities and convergence in gross domestic product (GDP) per capita levels to regional disparities in the EU. It also discusses some aspects of equality and welfare in household's disposable income and compensation of employees at the NUTS-2 level. It indicates that Estonia has significant regional disparities, wherein the capital region shows high income levels, while, the peripheral regions have low income levels.

This paper outlines the main trends in higher education in the Baltic States and in particular in Estonia and Latvia, on the basis of the European Union concept of competitiveness and knowledge-based society development. Using the World Bank system of knowledge-based indicators, the position of the Baltic States is discussed and compared with international competitiveness ratings. We illustrate higher education systems in Estonia and Latvia by providing information on present institutional structures and by analyzing the key issues that contributed to their adaptation to a market economy in the 1990s until they became members of the EU. The study suggests that the educational systems in Estonia and Latvia are rather similar and that they have been restructured in accordance with western educational requirements and quality standards. They have greatly benefited from international efforts to professionalize the faculty in these institutions. At the same time, the educational system is not yet fully adjusted to the dynamic needs of the labor market. In order to meet the needs of competitive development, the education systems of the Baltic States, as small open countries and new EU members, should focus on increasing the functional flexibility of the labor force. [ABSTRACT FROM AUTHOR]

The advantages of using the gravity approach for modeling transition processes in foreign trade are the ability of gravity models to explain international trade patterns under the conditions of comparatively little data and for validity of theoretical background of the model to the economies in transition. Both advantages are important when modeling transition processes. The results from using the gravity approach to explore the international trade patterns of Estonia as a country with a small, open, and comparatively successful transitional economy allow us to conclude that economies in transition should look for a regional niche to penetrate into the world market. Estonia has an excellent potential to develop trade relations within the Baltic Sea region (Baltic Rim) countries. Estonia's situation is certainly not unique, and conclusions presented in this paper could be applied to analyses of international trade patterns in other economies in transition. (JEL O10, F10, C10, O50) [ABSTRACT FROM AUTHOR]

The article focuses on the life and works of economist Heiki Müür in Estonia. At the age of 22, he was able to finish his studies at the Tallinn Technical University and was able to write several books related to economics like "Management and Planning," "Economics and National Economy" and "Prices and Economic Reform." In 1981, he became an effective organizer of the high scientific level economic conference and continued to restructure economic education research.