Working Life Barometer in the Baltic Countries 2002 (pdf) - mol.fi

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The rise in consumer prices has obviously been the greatest in Estonia and the
least in Lithuania. Below, all the country-specific data are presented in terms
of 1998 prices and in the currency of the country in question.
ESTONIA
The salary amount remaining in hand in Estonia has changed very little between
November-December 1998 and January 2002, if the effect of the rise in
consumer prices is taken into account. Nominal salaries have grown, but the
rather steep rise in consumer prices has decreased their purchasing power.
NET MONTHLY SALARY IN ESTONIA, 1998 AND 2002
Deflated to 1998 level using consumer price index (kr/month)
11-12/1998 1/2002
Change
(kr/month)
Change
(%)
Median 2761 kr 2673 kr -88 kr -3.2 %
Mean 3323 kr 3299 kr -24 kr -0.7 %
When the deflated salary development is examined as a whole, it is observed
that - taken on average - the net salary remaining in hand has fallen slightly.
Nominal wages have increased, but consumer prices have risen still more. The
rise in consumer prices was particularly great in Estonia in 2001. It is important
to notice that the concept of the net salary means in this connection ‘the
salary remaining in hand’. For example black income is part of it and in Estonia,
receiving of black income has decreased markedly (see later in this chapter).
Only a rough overall picture is gained on the basis of the average salary development.
Wage development may have been different for different workers. It
is therefore worthwhile to study the change in net salaries a little more differentially
than has been done above. One method is to divide the total number of
wage earners into ten equally sized parts, i.e. deciles. It is then possible to examine
what kind of net wages are received by those belonging to each decile.