Labor Market Regulation and its Characteristics: Comparison Between Czech Republic and Austria

• Authors: Martin Železník
• Languages of publication: EN

Abstracts

EN

In this paper, we are trying to compare the labor market regulation in the Czech Republic and Austria and its structural parameters that characterize the given labor markets. In order to do that, we estimate the New-Keynesian model with matching frictions and nominal wage rigidities. Labor market regulation is proxied by worker's bargaining power over the wage. This main parameter is moving inside the interval and express a share of the total surplus that arises from filling the vacancy. In fact it expresses the state of who gains more from the added value that the vacancy is filled (worker or employer). Results indicate that workers in Austria and the Czech Republic have almost the same bargaining power that arises from the labor market settings.

Keywords

EN

worker's bargaining power; labor market search; wage rigidities

• Publisher: Sciendo
• Journal: Review of Economic Perspectives
• Year: 2011
• Volume: 11
• Issue: 2
• Pages: 93-120

Dates

published

2011-01-01

online

2011-07-04

Contributors

author

Martin Železník

• Department of Economics, Faculty of Economics and Administration, MU, Lipová 41a, Brno

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Identifiers

DOI

10.2478/v10135-011-0009-8