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Presumptions for the Development of Labour Market Differences in a Homogeneous Group of Countries

Author(s): Daiva Beržinskienė

Journal: Engineering Economics
ISSN 1392-2785

Volume: 5;
Start page: 26;
Date: 2006;
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Keywords: homogeneous group of countries | the Baltic States | labour market | employment | unemployment | differences in labour market.

The main differences of labour markets in the BalticStates and the main factors influencing them in the contextof Euro integration are analysed in this paper. Thedifferences in different regions appear at the beginning ofthe European Union, but the last period of its developmentgave the most challenge for the new members aswell as the whole European Union. The factors that influencedthe changes in the labour markets can be groupedinto two periods: influence of transformation processestill the integration into the EU and development of theintegration processes of later years. Transformation andintegration processes began simultaneously and theyhave been carried on for different purposes through differentpolitical conditions and means. The results anddevelopment of these processes determined initial Eurointegration conditions and different development of labourmarkets in the EU countries. The Baltic States havea few similar features: they all have the similar territorialarea, all three states are post soviet countries and theireconomic development was determined by the similarfactors, but they have differences in the changes of theirlabour market structures. The differences of economicdevelopment between new members and the other EUcountries are obvious. Gross Domestic Product in someregions differs more than eight times and unemploymentrates – even seven times. Though the Baltic States areoften presented as one homogeneous group, the transformationand integration processes determined the differenteffects in their labour markets. To reduce thesesocial and economic differences in these regions and tostimulate the equal EU development – it is one of the politicalpurposes in the EU countries, so the presumptionsinfluencing the differences of labour markets in homogeneousgroup of the countries are analysed in this paper.
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