Czech labour market through the lens of a search and matching DSGE model


NĚMEC Daniel

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

Faculty of Economics and Administration

Field Economy
Keywords search and matching model; Bayesian estimation; DSGE model; structural changes
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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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