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Unemployment, Labour Market Programmes and Wage Determination: Evidence from the Czech and Slovak Republics

Author

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  • Huitfeldt, Henrik

    () (Department of Economics)

Abstract

This paper studies effects of unemployment and labour market programmes on real wages in the Czech and Slovak Republics using district paneldata for the period 1992-1998. Clear evidence of a "wage curve" exists in both countries. The estimated unemployment elasticity of pay is, however, higher in the Slovak Republic, than in the Czech Republic. The wage subsidy and the public works programme exert upward pressure on real wages in Slovakia. When accounting for effects from adjacent districts, a positive significant effect of labour market programmes is also estimated for the Czech Republic.

Suggested Citation

  • Huitfeldt, Henrik, 2001. "Unemployment, Labour Market Programmes and Wage Determination: Evidence from the Czech and Slovak Republics," Working Paper Series 2001:1, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uunewp:2001_001
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    Cited by:

    1. David G. Blanchflower & Andrew J. Oswald, 2005. "The Wage Curve Reloaded," NBER Working Papers 11338, National Bureau of Economic Research, Inc.
    2. David Castro Lugo, 2006. "Curva salarial: una aplicación para el caso de México, 1993-2002," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 21(2), pages 233-273.
    3. VAN POECK, André & VEINER, Maret, 2007. "Wage flexibility in the new European Union members: How different from the old?," Working Papers 2007016, University of Antwerp, Faculty of Applied Economics.
    4. Kamil Galuscak & Daniel Munich, 2003. "Microfoundations of the Wage Inflation in the Czech Republic," Working Papers 2003/01, Czech National Bank, Research Department.
    5. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
    6. Pierella Paci & Erwin R. Tiongson & Mateusz Walewski & Jacek Liwinski & Maria M. Stoilkova, 2007. "Internal Labor Mobility in Central Europe and the Baltic Region," World Bank Publications, The World Bank, number 6598.

    More about this item

    Keywords

    Wage determination; Unemployment; Labour market programmes;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • P39 - Economic Systems - - Socialist Institutions and Their Transitions - - - Other

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