Investigating Differences Between the Czech and Slovak Labour Market Using a Small DSGE Model with Search and Matching Frictions

NĚMEC, Daniel. Investigating Differences Between the Czech and Slovak Labour Market Using a Small DSGE Model with Search and Matching Frictions. The Czech Economic Review. Praha, 2013, vol. 7, No 1, p. 21-41. ISSN 1802-4696.

Basic information

• Original name: Investigating Differences Between the Czech and Slovak Labour Market Using a Small DSGE Model with Search and Matching Frictions
• Authors: NĚMEC, Daniel (203 Czech Republic, guarantor, belonging to the institution).
• Edition: The Czech Economic Review, Praha, 2013, 1802-4696.

Other information

• Original language: English
• Type of outcome: Article in a journal
• Field of Study: 50200 5.2 Economics and Business
• Country of publisher: Czech Republic
• Confidentiality degree: is not subject to a state or trade secret
• WWW: URL
• RIV identification code: RIV/00216224:14560/13:00067841
• Organization unit: Faculty of Economics and Administration
• Keywords in English: search and matching model; closed DSGE model; bayesian estimation; labour market flexibility
• Tags: International impact, Reviewed

Abstract

This contribution reveals some structural properties of the Czech and Slovak labour markets. A search and matching model incorporated into a small standard DSGE model is estimated using Bayesian techniques. Two sources of rigidities are implemented: wage bargaining mechanism and "search and matching" process matching workers and firms. The results show that the search and matching aspect provides satisfactory description of employment flows in both economies, and that the institutional characteristics do not differ too much in both economies. The model estimates provide interesting evidence that wage bargaining process is determined mainly by the power of firms. These results support the view of flexible wage environment in both economies. On the other hand, firms are confronted by increasing vacancy posting costs that limit vacancies creation. Relative low separation rate provides evidence of reduced mobility of the workers.

Links

• MUNI/A/0784/2012, interní kód MU: Name: ANALÝZA VÝVOJE EKONOMIKY A HOSPODÁŘSKÉ POLITIKY V OBDOBÍ DOZNÍVAJÍCÍ GLOBÁLNÍ KRIZE: DSGE modely malých otevřených ekonomik s finančními frikcemi a frikcemi trhu práce (Acronym: Analýza vývoje ekonomiky a hospodářské politiky)

Investor: Masaryk University, Category A