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This project builds on the results of the previous theme ¿Informational Support of Decision-Making Process and Modeling Economies in Transition¿, financed in 1998-2002. The goal of the new research project is to study structural changes in the Estonian labour market arising from the openness of the Estonian economy and economic integration to the EU. In addition, the project aims to forecast the risks and socio-economic consequences resulting from the changes in the labour market. Both theoretical and empirical approaches to analyse transformation processes in the labour market are developed and alternative scenarios of the development of the Estonian economy and society are proposed. The primary research topics are: 1) analysis of human capital, 2) analysis of labour demand, labour supply and labour market equilibrium; 3) analysis of labour market flexibility. The research methods are based on modern micro- and macroeconomic labour market theories and econometric methods. Descriptive statistical methods together with cross-sectional and panel data econometric methods are used. One of the aims is to build an open economy general equilibrium model to explain the effect of the mobility of production factors and differential taxation on labour market equilibrium. |