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Labor Market Policies and Unemployment in the Czech Republic

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  • Terrell, Katherine
  • Sorm, Vit

Abstract

We analyze the impact of the active labor market policies (ALMPS) and the unemployment compensation system (UCS) on unemployment duration's of different groups in the Czech population by estimating hazard functions with new macroeconomic data. We conclude these programs were effective in improving the functioning of the labor market. The UCS system has allowed the unemployed to search for jobs but has not unduly prolonged unemployment spells. This first analysis of the effectiveness of ALMPs on unemployment duration's shows that job brokering shortened spells of the groups that tended to have longer unemployment duration's: women, Romans, handicapped, less educated, and those with an unemployment history. Overall our results suggest that the UCS and the ALMPs increased the social acceptability of the painful economic transition.
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  • Terrell, Katherine & Sorm, Vit, 1999. "Labor Market Policies and Unemployment in the Czech Republic," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 33-60, March.
    • Handle: RePEc:eee:jcecon:v:27:y:1999:i:1:p:33-60
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    1. Calmfors, Lars & Skedinger, Per, 1995. "Does Active Labour-Market Policy Increase Employment? Theoretical Considerations and Some Empirical Evidence from Sweden," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 11(1), pages 91-109, Spring.
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    Cited by:

    1. Camarero, Mariam & Carrion-i-Silvestre, Josep Lluis & Tamarit, Cecilio, 2005. "Unemployment dynamics and NAIRU estimates for accession countries: A univariate approach," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 584-603, September.
    2. Pierre, Gaelle & Scarpetta, Stefano, 2004. "Employment regulations through the eyes of employers - do they matter and how do firms respond to them?," Policy Research Working Paper Series 3463, The World Bank.
    3. Vit Storm & Katherine Terrell, 1999. "A Comparitive Look at Labor Mobility in the Czech Republic: Where Have all the Workers Gone?," William Davidson Institute Working Papers Series 140, William Davidson Institute at the University of Michigan.
    4. Jekaterina Dmitrijeva & Mihails Hazans, 2007. "A Stock–Flow Matching Approach to Evaluation of Public Training Programme in a High Unemployment Environment," LABOUR, CEIS, vol. 21(3), pages 503-540, September.
    5. Nuria Rodriguez-Planas†, 2007. "What Works Best For Getting The Unemployed Back To Work: Employment Services Or Small-Business Assistance Programmes? Evidence From Romania," Working Papers 2007-32, FEDEA.
    6. Mark C. Berger & John S. Earle & Klara Sabirianova, 2001. "Worker Training in a Restructuring Economy: Evidence from the Russian Transition," Book chapters authored by Upjohn Institute researchers, in: Soloman W. Polachek (ed.),Worker Wellbeing in a Changing Labor Market, pages 159-189, W.E. Upjohn Institute for Employment Research.
    7. Michal Franta, 2008. "Time Aggregation Bias in Discrete Time Models of Aggregate Duration Data," Working Papers 2008/10, Czech National Bank.
    8. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
    9. Nuria Rodriguez-Planas† & Jacob Benus, 2007. "Evaluative Active Labor Market Programmes in Romania," Working Papers 2007-31, FEDEA.
    10. Lizal, Lubomir & Kocenda, Evzen, 2001. "State of corruption in transition: case of the Czech Republic," Emerging Markets Review, Elsevier, vol. 2(2), pages 138-160, June.
    11. International Monetary Fund, 2004. "Czech Republic: Selected Issues," IMF Staff Country Reports 2004/265, International Monetary Fund.
    12. Karoly Fazekas & Zsombor Cseres-Gergely & Agota Scharle (ed.), 2008. "The Hungarian Labour Market 2008," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, number 2008, December.
    13. Núria Rodríguez-Planas & Benus Jacob, 2010. "Evaluating active labor market programs in Romania," Empirical Economics, Springer, vol. 38(1), pages 65-84, February.
    14. Karoly Fazekas & Jeno Koltay (ed.), 2002. "The Hungarian Labour Market 2002," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, number 2002, December.
    15. Hoek, Jasper, 2006. "Life Cycle Effects of Job Displacement in Brazil," IZA Discussion Papers 2291, Institute of Labor Economics (IZA).
    16. Marta C. Lopes, 2022. "A review on the elasticity of unemployment duration to the potential duration of unemployment benefits," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1212-1224, September.
    17. Maritza López-Novella, 2003. "Working Paper 16-03 - Effets de certains subsides temporaires à l’embauche : une analyse micro-économique des plans plus et du plan avantage à l’embauche," Working Papers 0316, Federal Planning Bureau, Belgium.
    18. Benoit Dostie & David Sahn, 2006. "Labor Market Dynamics in Romania During a Period of Economic Liberalization," Cahiers de recherche 06-17, HEC Montréal, Institut d'économie appliquée, revised Jun 2008.
    19. Munich, Daniel & Svejnar, Jan, 2007. "Unemployment in East and West Europe," Labour Economics, Elsevier, vol. 14(4), pages 681-694, August.
    20. Theodoropoulos, Nikolaos & Voucharas, Georgios, 2023. "Firm Closures and Labor Market Policies in Europe: Evidence from Retrospective Longitudinal Data," GLO Discussion Paper Series 1288, Global Labor Organization (GLO).
    21. Alan A. Bevan & Saul Estrin, 2000. "The Determinants of Foreign Direct Investment in Transition Economies," William Davidson Institute Working Papers Series 342, William Davidson Institute at the University of Michigan.
    22. Núria Rodríguez-Planas & Jacob Benus, 2007. "Evaluating Active Labor Markets in Romania," UFAE and IAE Working Papers 699.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    23. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers and Notes 29142, The World Bank.

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    More about this item

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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