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

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  • Daniel Dujava

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    (Department of Economic Theory, University of Economics in Bratislava)

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    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 %.

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    Bibliographic Info

    Paper provided by Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava in its series EAPG Working Paper Series with number 007.

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    Length: 26 pages
    Date of creation: 03 Dec 2012
    Date of revision:
    Handle: RePEc:brt:wpaper:007

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    Related research

    Keywords: Cyclical employment; Economic cycles; Employment; Structural changes; Structural unemployment;

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