Vladislav Flek () (Czech National Bank and IES-FSV, Charles University, Prague) Jiří Večerník () (Institute of Sociology, Czech Academy of Sciences, Prague)
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The Czech Republic is no longer an employment haven, the site of what had been declared as an “unemployment miracle.” What happened? In this paper, the authors gather various statistical and sociological data on employment and unemployment trends, wage development, and workers’ opinions and their labor market strategies, taken from various surveys. In such manner, not only is the history of the Czech labor market over the past decade written, but also the reasons for the deteriorating labor market performance are addressed, and an appropriate policy agenda is outlined. In particular, the authors identify existing labor market rigidities and show that high unemployment here proceeds in an ever-widening gyre, resulting in the emergence of the unemployment trap and benefit dependency. Active labor market policy measures alone appear to be insufficient to deal with this problem.
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Volume (Year): 55 (2005) Issue (Month): 1-2 (January) Pages: 5-24 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
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