Postimees Digest, Monday, July 22

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Photo: Toomas Huik

Labor mobility in decline.

Central bank specialist Liina Malk says in an interview that her analysis of the effects of the Employment Contracts Act shows the law has had an adverse effect as worker mobility is in decline. Malk concludes that while the law did contribute to flexibility of the labor market, it failed to address labor security and that as a result people tend to hold on to their jobs no matter what whereas fewer people now move between jobs and more between employment statuses, meaning that people who leave employment are less likely to reenter the labor market. Malk adds that making unemployment insurance benefits available to people who quit their job on their own account could help boost security and remedy the situation. The analysis demonstrates that movement from employment to unemployment is up 2.6 percent and involuntary unemployment by 1.4 percent since the law took effect.

Estonia's small size contributes to corruption risk.

The European Anti-Fraud Office's (OLAF) 2012-2013 survey suggests that risk of corruption is highest at the very top and at the very bottom of the subsidies system and that Estonia's small size means that the roles of people involved in managing subsidies often overlap, creating potential conflicts of interest. Risks accumulate as Estonia only has around one thousand people involved in distributing EU subsidies and that beneficiaries and decision-makers often move in the same circles. Estonia's highly complicated public procurements system is listed as another factor as different offices might interpret matters differently.

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