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Unemployment Dynamics in Central Europe: A Labor Flow Approach

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Abstract

We analyze labor market flows and unemployment in the Czech Republic (CR), Slovakia and Poland over the period 2004–2007. Relative involvement of working-age population in gross labor market flows is approximately five times lower in central Europe than in the U.S. /UK. Yet, compared to neighboring countries, the CR suffers more from unemployment rigidity, as evidenced most convincingly by a relatively weakernet flowof workers from unemployment to employment. This net flow alone would cut the unemployment rate in Poland more than twice as fast as in the CR. The CR lags behind in creating jobs forthe unemployed, particularly for men, individuals with primary education, and for the 55–65 age group.

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  • Vladislav Flek & Martina Mysíková, 2012. "Unemployment Dynamics in Central Europe: A Labor Flow Approach," Working Papers IES 2012/07, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Mar 2012.
    • Handle: RePEc:fau:wpaper:wp2012_07
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    1. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June.
    2. Sorm, Vit & Terrell, Katherine, 2000. "Sectoral Restructuring and Labor Mobility: A Comparative Look at the Czech Republic," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 431-455, September.
    3. Robert Shimer, 2012. "Reassessing the Ins and Outs of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 127-148, April.
    4. Bruce Fallick & Charles A. Fleischman, 2004. "Employer-to-employer flows in the U.S. labor market: the complete picture of gross worker flows," Finance and Economics Discussion Series 2004-34, Board of Governors of the Federal Reserve System (U.S.).
    5. Steven J. Davis & R. Jason Faberman & John Haltiwanger, 2006. "The Flow Approach to Labor Markets: New Data Sources and Micro-Macro Links," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 3-26, Summer.
    6. Abowd, John M & Zellner, Arnold, 1985. "Estimating Gross Labor-Force Flows," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(3), pages 254-283, June.
    7. Bellmann Lutz & Estrin Saul & Lehmann Hartmut & Wadsworth Jonathan, 1995. "The Eastern German Labor Market in Transition: Gross Flow Estimates from Panel Data," Journal of Comparative Economics, Elsevier, vol. 20(2), pages 139-170, April.
    8. Katharine G. Abraham & Robert Shimer, 2001. "Changes in Unemployment Duration and Labor Force Attachment," NBER Working Papers 8513, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Simionescu Mihaela, 2018. "What Drives Economic Growth in Some CEE Countries?," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 28(1), pages 46-56, March.
    2. Marija Buselic & Jurica Bosna, 2019. "Defining the Unemployment Determinants of the Post-Transition Central European EU Member Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 17(1 (Spring), pages 79-103.
    3. Ondřej Dvouletý, 2023. "Underemployment and overemployment in Central Europe," Economics and Business Letters, Oviedo University Press, vol. 12(2), pages 147-156.
    4. Schoiswohl Florian & Wüger Michael, 2016. "A Representative Matched Cross-section Survey for Austria - Measuring Worker Flow Dynamics with the Austrian Labour Force Survey," Department of Economics Working Papers wuwp223, Vienna University of Economics and Business, Department of Economics.
    5. Ieva Brauksa & Ludmila Fadejeva, 2013. "Internal Labour Market Mobility in 2005-2011: The Case of Latvia," Working Papers 2013/02, Latvijas Banka.
    6. Maria Symeonaki & Dimitrios Parsanoglou & Glykeria Stamatopoulou, 2019. "The Evolution of Early Job Insecurity in Europe," SAGE Open, , vol. 9(2), pages 21582440198, May.
    7. Kamil Galuscak & Jan Solc & Pawel Strzelecki, 2018. "Labour Market Flows over the Business Cycle: The Role of the Participation Margin," Working Papers 2018/17, Czech National Bank.
    8. Maria Symeonaki & Glykeria Stamatopoulou, 2020. "On the Measurement of Positive Labor Market Mobility," SAGE Open, , vol. 10(3), pages 21582440209, July.
    9. Ludmila Fadejeva & Ieva Opmane, 2016. "Internal labour market mobility in 2005–2014 in Latvia: the micro data approach," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 16(2), pages 152-174.

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    More about this item

    Keywords

    EU-SILC; labor market flows; longitudinal data; unemployment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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