Labor market regulation and its characteristics: Comparison of Czech Republic and Austria
| Authors | |
|---|---|
| Year of publication | 2011 |
| Type | Article in Periodical |
| Magazine / Source | Národohospodárský obzor |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | worker's bargaining power; labor market search; wage rigidities |
| Description | In this paper we are trying to compare the labor market regulation in Czech Republic and Austria and its structural parameters, that characterize given labor market. In order to do that we estimate the New-Keynesian model with matching frictions and nominal wage rigidities. Labor market regulation is proxied by the worker's bargaining power over the wage. This main parameter is moving inside the interval <0,1> and it expresses a share of the total surplus, that arise of filling the vacancy. In fact it means, who gains more from the added value that the vacancy is filled (worker or employer). Results indicates, that the workers in Austria and Czech Republic have almost the same bargaining power that arise from the labor market settings. |
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