Measuring Inefficiency of the Czech Labour Market

J 2015

Measuring Inefficiency of the Czech Labour Market

NĚMEC, Daniel

Basic information

Original name

Measuring Inefficiency of the Czech Labour Market

Authors

NĚMEC, Daniel (203 Czech Republic, guarantor, belonging to the institution)

Edition

Review of Economic Perspectives - Národohospodářský obzor, Masarykova univerzita, 2015, 1213-2446

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50200 5.2 Economics and Business

Country of publisher

Czech Republic

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

URL

RIV identification code

RIV/00216224:14560/15:00083320

Organization unit

Faculty of Economics and Administration

DOI

http://dx.doi.org/10.1515/revecp-2015-0017

UT WoS

000446826600005

Keywords in English

Matching efficiency; Matching function; Regional labour market; Stochastic frontier model; Panel Data; Czech Republic

Abstract

V originále

This paper aims to quantify the performance of the Czech regional labour markets and to reveal the most influential economic factors standing behindits dynamics in the last fifteen years. Investigated labour markets are described using matching function approach. The successful matches are treated as an output of production process, where the unemployed are paired with vacancies. Efficiency of this matching process plays an important role in determining unemployment outflows. Using stochastic frontier model approach, dynamics of quantified efficiency terms is revealed and differences among regions are evaluated. The model specification includes a fixed effect term, where individual effect terms and inefficiency terms are estimated jointly. The stochastic frontier is estimated using monthly and quarterly regional panel data of 77 districts for the period 1999-2014. Matching efficiency of the Czech regional labour markets is negatively influenced by people who have been unemployed for a long time and by the unemployed aged over 50 years. Although all districts were able to operate at their stochastic fron-tiers of matching, an upward trend in the inefficiency has been found within the investigated period. These tendencies are accompanied by rising disparities among the regions. Low levels of estimated matching inefficiency do not necessary mean the low unemployment in the corresponding districts.

Links

MUNI/A/1235/2014, interní kód MU

Name: Aktuální přístupy k tvorbě a implementaci dynamických stochastických modelů všeobecné rovnováhy (Acronym: Aktuální přístupy k DSGE modelům)

Investor: Masaryk University, Category A

Files attached

2015_2_05_Nemec.pdf

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Citovat

NĚMEC, Daniel. Measuring Inefficiency of the Czech Labour Market. Review of Economic Perspectives - Národohospodářský obzor. Masarykova univerzita, 2015, vol. 15, No 2, p. 197-220. ISSN 1213-2446. Available from: https://dx.doi.org/10.1515/revecp-2015-0017.

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N2  - This paper aims to quantify the performance of the Czech regional labour markets and to reveal the most influential economic factors standing behindits dynamics in the last fifteen years. Investigated labour markets are described using matching function approach. The successful matches are treated as an output of production process, where the unemployed are paired with vacancies. Efficiency of this matching process plays an important role in determining unemployment outflows. Using stochastic frontier model approach, dynamics of quantified efficiency terms is revealed and differences among regions are evaluated. The model specification includes a fixed effect term, where individual effect terms and inefficiency terms are estimated jointly. The stochastic frontier is estimated using monthly and quarterly regional panel data of 77 districts for the period 1999-2014. Matching efficiency of the Czech regional labour markets is negatively influenced by people who have been unemployed for a long time and by the unemployed aged over 50 years. Although all districts were able to operate at their stochastic fron-tiers of matching, an upward trend in the inefficiency has been found within the investigated period. These tendencies are accompanied by rising disparities among the regions. Low levels of estimated matching inefficiency do not necessary mean the low unemployment in the corresponding districts.
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NĚMEC, Daniel. Measuring Inefficiency of the Czech Labour Market. \textit{Review of Economic Perspectives - Národohospodářský obzor}. Masarykova univerzita, 2015, vol.~15, No~2, p.~197-220. ISSN~1213-2446. Available from: https://dx.doi.org/10.1515/revecp-2015-0017.

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