Publication details

Investigating differences between the Czech and Slovak labour market

Authors

NĚMEC Daniel

Year of publication 2012
Type Article in Proceedings
Conference Proceedings of the International Scientific Conference Quantitative Methods in Economics (Multiple Criteria Decision Making XVI)
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web http://www.fhi.sk/files/katedry/kove/ssov/VKOXVI/Zbornik2012.pdf
Field Economy
Keywords search and matching model; DSGE model; wage bargaining; Bayesian estimation
Attached files
Description This contribution reveals some structural properties and differences of the Czech and Slovak labour markets. A small search and matching model incorporated into standard DSGE model is estimated using Bayesian techniques. Two sources of rigidities were implemented: wage bargaining mechanism and "search and matching" process matching workers and firms. The results show that search and matching aspect provides satisfactory description of employment flows in both economies. Model estimates provide interesting evidence that wage bargaining process is determined mainly by the power of the firms. These results support the view of flexible wage environment in both economies. On the other hand, the firms are confronted by the increasing vacancy posting costs that limit vacancies creation. Relative low separation rate provides evidence of reduced mobility of the workers.

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