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what forced entrepreneurs, after a long period of not raising wages, to do so at the end of the boom like that?

Entrepreneurs really started to feel shortage in competent and reliable workforce. Economic emigration to the West was already in full force, and then the credit boom made the old wages laughably not worth working for.

There was also big disparity in wages: construction workers were paid very well (although the West were already in the West), while public workers like teachers were under-appreciated.

Wages in the Baltics were very stagnant because econoy through the 90s was still not good. In the beginning of 2000s, entrepreneurs were not raising wages unless they were "forced" to. Additional "envelope" (behind the counter) wage payments were also widespread.

by das monde on Wed Sep 2nd, 2009 at 10:10:27 PM EST
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das monde:
Additional "envelope" (behind the counter) wage payments were also widespread.

A minor scandal erupted when it became clear that swedish banks had in the Baltics allowed people to borrow against their behind the counter income. Blew over quickly though.

Did any of the Baltic countries tax authorities crack down on this habit of behind the counter pay? That could also explain an increase in open wages.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Fri Sep 4th, 2009 at 07:14:07 AM EST
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