Investigating Differences Between the Czech and Slovak Labour Market Using a Small DSGE Model with Search and Matching Frictions

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Title:Investigating Differences Between the Czech and Slovak Labour Market Using a Small DSGE Model with Search and Matching Frictions
Creators:
Němec, Daniel
Journal or Publication Title:
Czech Economic Review, 7, 1, pp. 21-42
Uncontrolled Keywords:Search and matching model, closed DSGE model, Bayesian estimation, labour market flexibility

Abstract

This contribution reveals some structural properties of the Czech and Slovak labour markets. A search and matching model incorporated into a small standard DSGE model is estimated using Bayesian techniques. Two sources of rigidities are implemented: wage bargaining mechanism and “search and matching” process matching workers and firms. The results show that the search and matching aspect provides satisfactory description of employment flows in both economies, and that the institutional characteristics do not differ too much in both economies. The model estimates provide interesting evidence that wage bargaining process is determined mainly by the power of firms. These results support the view of flexible wage environment in both economies. On the other hand, firms are confronted by increasing vacancy posting costs that limit vacancies creation. Relative low separation rate provides evidence of reduced mobility of the workers.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=1DC439B8-6D51-494C-BB74-B3362A53FD83&articleid=D57D35C4-456D-4D4E-A0E8-B21806667975

Title:Investigating Differences Between the Czech and Slovak Labour Market Using a Small DSGE Model with Search and Matching Frictions
Creators:
Němec, Daniel
Uncontrolled Keywords:Search and matching model, closed DSGE model, Bayesian estimation, labour market flexibility
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:Czech Economic Review
Volume:7
Number:1
Page Range:pp. 21-42
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:7685
Item Type:Article
Deposited On:04 Apr 2013 17:28
Last Modified:04 Apr 2013 15:28

Citation

Němec, Daniel (2013) Investigating Differences Between the Czech and Slovak Labour Market Using a Small DSGE Model with Search and Matching Frictions. Czech Economic Review, 7 (1). pp. 21-42. ISSN 1802-4696

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