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Employment structure and unemployment in the czech republic


  • Vladislav Flek


Did exceptionally low unemployment between 1990-1996 mean that the CzechRepublic had sacrificed more labour market flexibility and faster changes inthe structure of employmnet in exchange for social stability? Or had thecountry made use of its specific initial conditions and managed to followits own mode of labour market restructuring, without the necessity ofincreasing the rate of unemployment drastically? Does currently increasingunemployment accelerate the coversion of the structure of employment towardsthe EU-15 patterns? In attemting to answer the above questions, the paperargues that the Czech unemployment miracle has disappeared as soon as theparticipation rate had become stable, labour shedding accelerated and theeconomic policies responded to macroeconomic overheating. The main sourcesof structural changes in employment were massive labour force withdrawals inagriculture and industry, coupled with job-to-job movements of labour. But,the process of further structural changes has nearly been stopped, despitethe recent rise in unemployment. Instead of being a driving force of labourmobility, current unemploymnet bears predominantly cyclical features.

Suggested Citation

  • Vladislav Flek, 1999. "Employment structure and unemployment in the czech republic," Prague Economic Papers, University of Economics, Prague, vol. 1999(3).
  • Handle: RePEc:prg:jnlpep:v:1999:y:1999:i:3:id:46

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    References listed on IDEAS

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    Cited by:

    1. Jaromír Gottvald, 2005. "Czech Labor Market Flows 1993-2003 (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 41-53, January.
    2. Tyrowicz, Joanna & Van der Velde, Lucas, 2017. "Labor Reallocation and Demographics," IZA Discussion Papers 11249, Institute for the Study of Labor (IZA).
    3. Joanna Tyrowicz & Lucas van der Velde, 2014. "Can We Really Explain Worker Flows in Transition Economies?," Working Papers 2014-28, Faculty of Economic Sciences, University of Warsaw.
    4. Beate Henschel & Carsten Pohl, 2003. "Interindustrielle Lohndifferenzierung in Zentraleuropa," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 56(24), pages 9-15, December.


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