IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa98p42.html
   My bibliography  Save this paper

Twin peaks in regional unemployment and returns to scale in job-matching in the Czech Republic

Author

Listed:
  • Stefan Profit

    ()

Abstract

The regional distribution of unemployment rates in the Czech Republic over the transition period is shown to be characterized by twin peaks, e.g. a high and a low unemployment equilibrium. The emer-gence of strong regional disparities at the beginning of the 1990s can, at least partially, be explained by regionally different degrees of competition between the emerging private sector and state-owned enterprises for skilled labor and the role of on-the-job transitions on the parameters of the matching function. This study presents a formalization of these effects and estimates empirical matching func-tions for a panel of labor market districts of the Czech Republic between January 1992 and July 1994. When time-series properties of unemployment to job exits are taken into account and dynamic panel estimators are applied, the Czech matching function is shown to exhibit increasing returns to scale, being consistent with multiple unemployment equilibria. Considering variables, which approximate the degree of job competition of employed workers in the search process, reveals strong heterogeneity of matching parameters with respect to the relative position of districts in the regional distribution of unemployment and vacancy rates, and the share of district employment in the private sector.

Suggested Citation

  • Stefan Profit, 1998. "Twin peaks in regional unemployment and returns to scale in job-matching in the Czech Republic," ERSA conference papers ersa98p42, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa98p42
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa98/papers/42.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Boeri, Tito & Burda, Michael C., 1996. "Active labor market policies, job matching and the Czech miracle," European Economic Review, Elsevier, vol. 40(3-5), pages 805-817, April.
    2. Blanchard, Olivier Jean & Diamond, Peter, 1992. "The Flow Approach to Labor Markets," American Economic Review, American Economic Association, vol. 82(2), pages 354-359, May.
    3. Patricia M. Anderson & Simon M. Burgess, 1995. "Empirical Matching Functions: Estimation and Interpretation Using Disaggregate Data," NBER Working Papers 5001, National Bureau of Economic Research, Inc.
    4. Bianchi, Marco & Zoega, Gylfi, 1997. "A nonparametric analysis of regional unemployment dynamics in Britain," SFB 373 Discussion Papers 1997,94, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    5. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:wiw:wiwrsa:ersa98p42. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.