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Non-uniformity of job-matching in a transition economy: A nonparametric analysis for the Czech Republic

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  • Profit, Stefan
  • Sperlich, Stefan

Abstract

We consider problems in modelling job-matching in the Czech Republic during the transition to a market economy. Special interest is devoted to functional form considerations and the analysis of returns to scale of the matching function. This explorative study aims to shed some light into the black-box of the matching technology by applying nonparametric estimation techniques which relax distributional assumptions. Nonparametric additive modelling enables us to evaluate the matching process locally for each combination of the underlying matching factors, rather than being restricted to global parameters. We apply these techniques to a rich panel of monthly observations of unemployment vacancies and unemployment-to-job exits in all 76 labor market districts in the Czech Republic between January 1992 and September 1996, and find non-linearities in the partial adjustment process as well as a partially negative coefficient of unemployment outows with respect to vacancies in some years. Moreover, we find locally increasing returns to scale in job-matching, which may be responsible for multiple equilibrium unemployment rates in the Czech Republic during the transformation process.

Suggested Citation

  • Profit, Stefan & Sperlich, Stefan, 1998. "Non-uniformity of job-matching in a transition economy: A nonparametric analysis for the Czech Republic," SFB 373 Discussion Papers 1998,15, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    • Handle: RePEc:zbw:sfb373:199815
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    Cited by:

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    2. Stefan Sperlich & Raoul Theler, 2015. "Modeling heterogeneity: a praise for varying-coefficient models in causal analysis," Computational Statistics, Springer, vol. 30(3), pages 693-718, September.
    3. Moore, Tomoe & Pentecost, Eric J., 2006. "An investigation into the sources of fluctuation in real and nominal wage rates in eight EU countries: A structural VAR approach," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 357-376, June.
    4. Pablo de Pedraza, 2008. "Labour Market Matching Efficiency In The Czech Republic Transition," William Davidson Institute Working Papers Series wp920, William Davidson Institute at the University of Michigan.

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    More about this item

    Keywords

    marginal integration; Job-matching; returns to scale; nonparametric analysis; testing additivity; Czech Republic;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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