United in Diversity. Labor Markets in the CEE Countries

Michal Benèík ()
Additional contact information
Michal Benèík: National Bank of Slovakia
Authors registered in the RePEc Author Service: Michal Bencik

Journal of Economics / Ekonomicky casopis, 2022, vol. 70, issue 4, 333-348

Abstract: We study supply side factors of the labor 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, labor 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 labor supply can adapt to shocks. In practice this would suggest that it was more efficient for Slovakia to conduct supply-oriented policies to stabilize labor market conditions. On the contrary, the more efficient tools for the Czech Republic are wage-oriented policies, connected to the demand side.

Keywords: unemployment rate; real wage; capital stock; vector error correction (search for similar items in EconPapers)
JEL-codes: E24 J31 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.sav.sk/journals/uploads/0905143904%202 ... %C3%ADk%20+%20SR.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sav:journl:v:70:y:2022:i:4:p:333-348

Access Statistics for this article

Journal of Economics / Ekonomicky casopis is currently edited by Tomas Jeck

More articles in Journal of Economics / Ekonomicky casopis from Institute of Economic Research, Slovak Academy of Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Peter Renac ().