Improving the Provision of Active Labour Market Policies in Estonia
This report on Estonia is the seventh country study published in a series of reports looking into how policies connect people with jobs. It discusses the set-up and performance of active labour market policies (ALMPs) in Estonia. In particular, the report analyses the institutional and regulatory framework of ALMP provision in Estonia, assesses the need for ALMPs in the Estonian population and evaluates whether ALMPs reach the people they are targeted to. For that purpose, the report relies on the analysis of a rich set of linked administrative data which allow to identify the labour market obstacles faced by people furthest from the labour market, and identify gaps and overlaps in the ALMPs and related support provided to them.
Groups in need of active labour market policies and their obstacles to labour market inclusion
One quarter of 15‑64 year‑olds in Estonia are only weakly attached to the labour market (they do not work, or work only some months a year, work on unstable employment contracts or have low earnings) and might achieve better labour market outcomes through active labour market policies. While all regions in Estonia are home to a significant share of people with weak attachment to the labour market, counties in the country’s East and South are particularly concerned. Skills obstacles, family-related obstacles and obstacles to integrate into the society (very long periods out of employment, migratory background, etc.) are particularly widespread among groups with weak labour market attachment. Almost all of persons weakly attached to the labour market face at least one labour market obstacle, three‑quarters face at least two obstacles and close to 40% face three obstacles or more. The correlation between different labour market obstacle types is overall low, suggesting that “typical” profiles of people with needs for active labour market policies may be insufficient to reflect the diverse life circumstances of people with weak labour market attachment in Estonia.
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