Czech labour market through the lens of a search and matching DSGE model
| Authors | |
|---|---|
| Year of publication | 2011 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 29th International Conference on Mathematical Methods in Economics 2011 |
| MU Faculty or unit | |
| Citation | |
| Web | http://mme2012.opf.slu.cz/proceedings/pdf/109_Nemec.pdf |
| Field | Economy |
| Keywords | search and matching model; Bayesian estimation; DSGE model; structural changes |
| Attached files | |
| Description | This contribution reveals some important structural properties of the Czech labour market in the last fifteen years and evaluates possible changes within this period. A small search and matching model incorporated into standard macroeconomic dynamic stochastic general equilibrium model is estimated using Bayesian techniques. The results show that search and matching aspect provides satisfactory description of employment flows in the Czech economy. Model estimates provide convincing evidence that wage bargaining process is determined mainly by the power of the unions and that the institutional changes of the Czech labour market in the last fifteen years had only little real impact on the matching effectiveness. |
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