Three remarks about emigration in Baltics

I think labour emigration from Eastern Europe to West Europe is a natural cause of actions. Although salaries are rising in East, the wage gap is huge and living standard is tempting in West. According to the academic researches (Mandsoor, Quillin, 2006) on average wage cap between 30 to 40 percent is necessary, but not sufficient to change the sign of net migration. Jet in the year 2007 GDP per capita PPP in the Baltic States formed 50 to 60 percent of Sweden’s or UK`s income level. That is one of the explanations for ongoing process of emigration in Baltics. Secondly foreign investors complain over lack of labour is due to the unwillingness to invest into new technologies or using new working methods. For example, huge company producing electronic equipment is closing its branch in Estonia due to the rising labour costs; workers were paid a minimal wage, in the same time the average wage growth in Estonia was 20%. I think high-skilled labour force in Eastern-Europe is more productive and more valued in west. Thirdly, it is not wise to freeze wage level by governments struggling with lack of labour. Interference in integration and convergence might induce emigration even more.


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