UNITED IN DIVERSITY. LABOUR MARKETS IN THE CEE COUNTRIES

• Authors: Benčík Michal
• Languages of publication: EN

Abstracts

EN

We study supply side factors of the labour market in the Czech Republic, Hungary, Poland and Slovakia. The common economic history of these Central European economies suggests that long-run relationships should have similar patterns. While we find that for the Czech Republic and Hungary there exists a long-run relation of equilibrium unemployment rate to real wages, capital stock and terms of trade, such relationship does not hold for Poland and Slovakia. Instead, labour market trends are better described by the relationship of equilibrium real wages. This finding uncovers structural differences within the Visegrad countries. These differences relate to the extent to which labour supply can adapt to shocks. In practice this would suggest that it was more efficient for Slovakia to conduct supply-oriented policies to stabilize labour market conditions. On the contrary, the more efficient tools for the Czech Republic are wage-oriented policies, connected to the demand side.

Keywords

EN

LABOUR MARKETS; CEE COUNTRIES; UNEMPLOYMENT; WAGE

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2022
• Volume: 70
• Issue: 4
• Pages: 333 – 348

Contributors

author

Benčík Michal

• National Bank of Slovakia, Imricha Karvaša 1, 813 25 Bratislava, Slovak Republic

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2022.04.02