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Understanding Long-Term Unemployment in the Czech Republic

Author

Listed:
  • štìpán Jurajda
  • Daniel Münich

Abstract

One potential negative impact of the EU accession of Central European economies could be unemployment hysteresis working through long-term unemployment (LTU). In this paper we explore the mechanisms of LTU by providing a detailed description of the recent rise in Czech LTU following a domestic recession in 1997. We place the Czech data in an international context using VAR-based simulations and examine the role of welfare benefits in driving LTU.

Suggested Citation

  • štìpán Jurajda & Daniel Münich, 2003. "Understanding Long-Term Unemployment in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 53(1-2), pages 11-30, January.
  • Handle: RePEc:fau:fauart:v:53:y:2003:i:1-2:p:11-30
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    File URL: http://journal.fsv.cuni.cz/storage/920_02_011-030.pdf
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    Cited by:

    1. Martin Guzi, 2014. "An Empirical Analysis of Welfare Dependence in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(5), pages 407-431, November.
    2. Jan Babecky & Kamil Galuscak & Lubomir Lizal, 2011. "Firm-Level Labour Demand: Adjustment in Good Times and During the Crisis," Working Papers 2011/15, Czech National Bank, Research Department.

    More about this item

    Keywords

    long-term unemployment; welfare; simulation;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications

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