Ex post Investigation of Employment Drops: Case of Slovak and Czech Republic

Daniel Dujava

No 7, EAPG Working Paper Series from Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava

Abstract: In the study we propose an index of unemployment caused by structural changes. In the case of employment drop, the index enables to quantify what fraction of jobs has been lost because of ongoing structural changes. The index is based on distinction between temporary and permanent changes in employment in different industries. We consider fluctuations outside the corridor defined by initial and final level of employment to be temporary. It is possible to calculate the index only after employment reaches its former level which is its major drawback. We apply this methodology on Slovakia and Czech Republic during the period 1996 - 2007. We find out that in Slovakia, 62 % of jobs have been lost due to structural reasons. In Czech Republic, corresponding number is 55 %.

Keywords: Cyclical employment; Economic cycles; Employment; Structural changes; Structural unemployment (search for similar items in EconPapers)
JEL-codes: J69 L16 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2012-12-03
New Economics Papers: this item is included in nep-lab and nep-tra
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