This document summarizes a study analyzing the ethnic divide in Estonia's labor market. The study finds that unemployment rates have consistently been higher among ethnic minorities compared to Estonians. Ethnic minorities also earn less on average and are underrepresented in managerial and skilled specialist roles. Major risk factors for poorer labor market outcomes among ethnic minorities identified in the study include lower Estonian language proficiency, citizenship status, education levels, age, gender, region of residence, cultural differences, attitudes, and employer discrimination based on ethnicity.

1. Ethnic Divide in the Estonian Labour
Market
Kristjan Kaldur
Institute of Baltic Studies

2. Introduction / Findings from previous studies
Ethnic dividein the Estonian labour market
• Estonians and other nationalities / ethnic minorities
Gap between two ethnic groups increased after the
restoration of independencein 1991
The situation is particularly acute in Ida-Viru county
People of other nationalities do not constitute a single
homogeneous group
• No universal solutions

3. Our analysis
Purpose: analysethe scope, possiblecauses and consequences of
ethnic segregation in the Estonian labour market
Combination of meta-analysis and statisticaldata analysis
Systematic review of most relevant factors
Meta-analysis: 15 studies (2000-2016)
• monitorings of integratsioon, human development reports and other
studies and articles that compare two ethnic groups
Statistical data analysis: 6 databases
• Labour forcesurvey, Work life survey, databases of Statistics Estonia,
Monitoring of Integration 2015 survey, etc.

5. Structure
Individual-levelfactors (8)
E.g. Estonian language skills, level
of education, age, sex
Objective characteristics (9)
E.g. Employment and
unemployment rate, annual income
Structural factors (7)
E.g. Legal-political context,
regionaal differences,
discrimination
Assessments / values (15)
E.g. Perception of equality of
opportunities, expectations of state
intervention

6. Ethnic gap in the Estonian labour market (1)
11.9 10.5
8.6 7.7 6.7 5.4 4 3.5 4.1
10.8
13.3
9.6
7.6 6.8 6 5.4
19.7
17.8 16.5 15.7 16.9
13.1
9.8
6.7 8.2
19
23.4
17.9
15
12.4
10.3
8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Estonians Other nationalities
3,469 3,848
4,557
5,637
6,639
7,596 7,197 7,020 7,550
8,709
9,412 10,010
2,766 3,138
3,907 4,544
5,611
6,308 5,812 5,509 6,083
7,014 7,395
8,249
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Estonians Other nationalities

7. Ethnic gap in the Estonian labour market (2)
Estonians (%) Other nationalities (%)
Share of managers among workers 6,9 3,9
Share of highly qualified specialists among workers 14,2 11,1
Share of managers among workers with higher education 15,2 8,6
Share of highly qualified specialists among workers with
higher education
51,9 43,1
7.2 7 7.4 7.9 8.5 7.9 7.4 8.1
20.7 21.4
19.2 18.6 19 17.3 16.2 17.2
2009 2010 2011 2012 2013 2014 2015 2016
Estonians Other nationalities

8. Major risk factors for ethnic minorities
• Estonian language skills (low)
• Citizenship (undetermined, non-EU)
• Education (Basic or lower)
• Age (15-24; 55+)
• Sex (female)
• Region (Ida-Viru county, Tallinn)
• Cultural differences (lower mobility, gender stereotypes, limited social
networks)
• Attitudes (higher insecurity, negativity, higher demands for job offers,
lower satisfaction with job)
• Discrimination by employers (non-Estonian origin)