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Non-uniformity of job-matching in a transition economy - A nonparametric analysis for the Czech Republic

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  • Stefan Profit
  • Stefan Sperlich

Abstract

This study explores the properties and development of the matching technology in the Czech Republic during the transition to a market economy. Nonparametric additive modelling allows us to assess flexible functional forms, which comprise for instance CES and trans-log specifications. This enables us to evaluate the matching process locally for each combination of unemployment and vacancies rather than being restricted to global coefficients. Special interest is devoted to analysis and economic determinants of regional variation in the returns to scale of the matching function. Non-linearities are found in the partial adjustment process of unemployment outflows, and a negative coefficient on vacancies in some years. Moreover, increasing returns to scale in job-matching are found locally. Returns to scale are found to be negatively correlated to the share in employment in services and to outmigration, positively correlated to the employment share in industry, the unemployment rate and various measures of active labour market policies.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 7 ()
Pages: 695-714

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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:695-714

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  1. Burdett, Kenneth & Coles, Melvyn G & van Ours, Jan C, 1994. "Temporal Aggregation Bias in Stock-Flow Models," CEPR Discussion Papers 967, C.E.P.R. Discussion Papers.
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  12. Burda, Michael C, 1993. "Modelling Exits from Unemployment in Eastern Germany: A Matching Function Approach," CEPR Discussion Papers 800, C.E.P.R. Discussion Papers.
  13. Burda, Michael C & Profit, Stefan, 1996. "Matching Across Space: Evidence on Mobility in the Czech Republic," CEPR Discussion Papers 1364, C.E.P.R. Discussion Papers.
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  16. repec:wop:humbsf:1998-19 is not listed on IDEAS
  17. Paul Gregg & Barbara Petrongolo, 1997. "Random or Non-Random matching? Implications for the use of the UV 234 curve as a measure of matching effectiveness," CEP Discussion Papers dp0348, Centre for Economic Performance, LSE.
  18. Weder, Mark, 1998. "Fickle Consumers, Durable Goods, and Business Cycles," Journal of Economic Theory, Elsevier, vol. 81(1), pages 37-57, July.
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