Detailed Information on Publication Record
2015
Labor Market Frictions in the Czech Republic and Hungary
PÁPAI, Adam and Daniel NĚMECBasic information
Original name
Labor Market Frictions in the Czech Republic and Hungary
Authors
PÁPAI, Adam (703 Slovakia, belonging to the institution) and Daniel NĚMEC (203 Czech Republic, guarantor, belonging to the institution)
Edition
Plzeň, 33rd International Conference Mathematical Methods in Economics Conference Proceedings, p. 606-611, 6 pp. 2015
Publisher
University of West Bohemia
Other information
Language
English
Type of outcome
Stať ve sborníku
Field of Study
Economics
Country of publisher
Czech Republic
Confidentiality degree
není předmětem státního či obchodního tajemství
Publication form
electronic version available online
References:
RIV identification code
RIV/00216224:14560/15:00083811
Organization
Ekonomicko-správní fakulta – Repository – Repository
ISBN
978-80-261-0539-8
UT WoS
000387898900104
Keywords in English
DSGE; small open economy; labor market; search and matching frictions; Great Recession
Links
MUNI/A/1235/2014, interní kód Repo.
Změněno: 2/9/2020 06:34, RNDr. Daniel Jakubík
Abstract
V originále
The goal of this paper is to investigate and compare the structural and dynamical characteristics of the Czech and Hungarian economy. The focus lies mainly on the examination of the development of key labor market variables. We also want to capture the changes that occurred due to the Great Recession in 2008. We estimate a DSGE model with search and matching frictions, price and wage rigidities and hiring costs. The monetary authority sets the nominal interest rates according to a Taylor-type rule. The wages setting mechanism and hours worked are the result of the Nash bargaining process. This model is estimated for the quarterly data of the Czech Republic and Hungary for the period 2001Q2 – 2014Q4. The results show that the reactions of variables to monetary shock are larger in the Czech Republic. This suggests that the monetary policy is less efficient in Hungary during the examined period. The bargaining power of workers is stronger in the Czech economy. This coefficient is smaller in Hungary, which is in line with the low trade union participation of workers. The model shows the preference, foreign and disutility from work shocks to be the main cause of the Great Recession in both countries.