Employment Growth and Labour Elasticity in V4 Countries: Structural Decomposition Analysis

Abstract

In the present paper, we analyse the determinants of employment growth in V4 countries. While a standard approach relies on the parametric estimation of labour elasticity coefficients, we employ a novel approach based on structural decomposition analysis. This allows us to identify several determinants which mitigate the effects of economic growth on employment. We decompose the overall change in employment into the contribution of six factors: changes in labour productivity, changes in the import of intermediate products, changes in the structure of production, changes in the final demand structure by industries and by sectors, and a change in final demand volume. We show that besides the generally accepted influence of labour productivity growth on employment, other factors such as structural changes and changes in final demand played an important role in employment changes. These results shed some light on low labour elasticity in V4 countries and go beyond the simple labour productivity growth argument.

Migrants Remittances: Microeconomic and Macroeconomic Contexts

“…However, another tendency was observed in Poland. When comparing all V4 countries, we can see that the total volume of remittances received by Poland rose much more significantly than in neighbouring countries (Hudcovský et al, 2017).…”

Explaining emigration patterns in Estonia, Lithuania, Slovenia and Slovakia

“…Supportive evidence of the inverse relationship between unemployment and the attractiveness of the potential destination country was provided by Bertoli et al (2016) and Beine et al (2018). The outcome of the growth of the unemployment rate on the decision to migrate can be mitigated by the presence of unemployment benefits, as newly arrived immigrants are not eligible for unemployment advantages, therefore migration behavior could be more sensitive to changes in unemployment in the host country rather than in the source (Hudcovský et al 2017).…”

Influence of Input Value and Labor Expenditure on Output Value: A Case of Micro and Small Scale Industry in Indonesia

“…According to Soekartawi (2003) factors of production are often referred to as "victims" production because the production factor "sacrificed" to produce the production. To produce a product, the necessary knowledge of the relationship between the factors of production (input) and producing results (output) is essential (Evans et al, 2000;Hudcovský et al, 2017). In this study, the analyzed types of production factors are input values and labor.…”