While the empirical economic research has long focused on capturing the rigidities of the labour markets on the level of the whole economy, the structural policy might benefit much more from a regional perspective. This paper follows exactly this path, focusing on the regional differences in labour market rigidities. The concept of the labour market rigidity is captured by the sensitivity of probability of finding a job on the labour market tightness, a key relationship behind the search model of the labour market referred to as matching function. The relationship is estimated as time-varying using the Kalman filter procedure. Indeed the results go to prove that the situation among the regional labour markets in the Czech economy varies with respect to space as well as time.
University of Economics, Prague, Faculty of Business Administration, nám. W. Churchilla 4, 130 67 Praha 3, Czech Republic
Publication order reference