IDEAS home Printed from
   My bibliography  Save this paper

Raising the Flexibility of the Slovak Economy during the Catch-Up Phase


  • Isabell Koske



As in other catch-up countries inflation is likely to stay high going forward due to nominal convergence. To better cope with the risk of a too rapid pick up of wages during the convergence process on the one hand and to raise the adjustment potential of the economy to macroeconomic shocks on the other, labour and product market flexibility is essential. Three main areas for improvement are discussed in this chapter. First, wage flexibility should be safeguarded by avoiding significant increases in minimum wages and by abolishing legal extension of collective wage settlements. Second, competition needs to be strengthened, especially in the liberal professions where entry and conduct regulation should be eased. In addition, the points of single contact that already exist for small enterprises should be extended to entrepreneurs of the liberal professions. Third, a wider use of information and communication technology (ICT) could lead to important productivity gains. Removing obstacles to the spread of e-business and a swift implementation of e-government are imperative. This Working Paper relates to the 2009 OECD Economic Survey of the Slovak Republic. Accroître la flexibilité de l'économie slovaque durant la phase de rattrapage Comme dans les autres pays en phase de rattrapage, l’inflation devrait rester élevée à l’avenir sous l’effet du phénomène de convergence nominale. Pour mieux parer aux risques d’augmentation trop rapide des salaires au cours du processus de convergence, d’une part, et pour accroître les possibilités d’ajustement de l’économie aux chocs macroéconomiques, d’autre part, il est indispensable que le marché du travail et les marchés de produits soient flexibles. On examinera dans ce chapitre les trois principaux domaines où des améliorations devraient être réalisées. Premièrement, il faudrait préserver la flexibilité des salaires en évitant de fortes hausses du salaire minimum et en mettant fin à l’extension des conventions collectives salariales. Deuxièmement, la concurrence doit être renforcée, surtout dans les professions libérales, où il faudrait assouplir l’entrée et les conditions d’exercice. De plus, il serait souhaitable d’étendre aux professions libérales les guichets uniques qui existent déjà pour les petites entreprises. Troisièmement, la productivité pourrait sensiblement progresser si on utilisait plus largement les technologies de l’information et de la communication (TIC). Il est impératif de supprimer les obstacles à la diffusion du commerce électronique et de mettre en placer rapidement l’administration électronique. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la République slovaque 2009.

Suggested Citation

  • Isabell Koske, 2009. "Raising the Flexibility of the Slovak Economy during the Catch-Up Phase," OECD Economics Department Working Papers 680, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:680-en
    DOI: 10.1787/226268184666

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item

    More about this item


    convergence nominale; flexibilité du marché des biens; flexibilité du marché du travail; labour market flexibility; nominal convergence; product market flexibility; République slovaque; Slovak Republic;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:680-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.