Why Eastern Europe wages are several times lower than Western Europe?

In Eastern Europe countries ?the new European Union (EU) member states? labour movement into the older EU member states, where salaries are higher, has become a serious problem. Why do people not get paid high salaries in Eastern Europe countries (Baltic States) as they do in Western Europe: in Sweden, Finland or Germany? This article focuses on the analysis of productivity and salaries and their relations in East Europe, primarily in Estonia. It is usually alleged that salaries cannot be increased due to low productivity. Since Estonian productivity in ratios is more than two times higher than salaries, the question “Why?” proposes itself. While the emphasis of this article will be on Estonia, the EU as an entirety has partially been involved for theoretical generalisations. After the opening of the EU labour markets, some EU countries started facing the problem of partial workforce drain into richer countries with higher salaries. The main migration destination from Estonia is Finland. At the same time, on the one hand, East European countries face quite high unemployment rates and many vacant jobs on the other ? there is a lack of qualified workforce.