Efficiency of the European labour markets: The Case of Czech Republic (A Stochastic frontier model approach)
| Authors | |
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| Year of publication | 2014 |
| Type | Article in Proceedings |
| Conference | 32nd International Conference Mathematical Methods in Economics Conference Proceedings |
| MU Faculty or unit | |
| Citation | |
| Web | Conference proceedings |
| Field | Economy |
| Keywords | matching efficiency; matching function; European labour markets; Czech Republic; stochastic frontier model; panel data |
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| Description | This contribution aims to provide a consistent methodology to evaluate the performance of the European labour markets in the last 20 years and to reveal the most important factors influencing the efficiency of these labour markets. In particular, it focuses on the Czech labour market. Labour markets and their dynamics may be described by the standard Cobb-Douglas matching functions. Successful matches are thus treated as an output of a production process where unemployed are paired with available vacancies. Unemployment outflows are determined by the efficiency of corresponding matching process. Using stochastic frontier model approach, we estimate the efficiency of matching functions of Czech labour market, reveal the dynamics of quantified efficiency indicators and evaluate the differences among the regions. The stochastic frontier is estimated using the regional panel data set for the period 1997-2013. The model specification includes fixed effect |
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