Regional matching (in)efficiency on the Croatian labour market

Abstract

This article investigates the efficiency of the matching process by panel stochastic frontier estimation of the matching function in Croatia. The empirical analysis is conducted on a regional level using regional office-level monthly data obtained from the Croatian Employment Service for 2000-2011. The results suggest that the efficiency of the matching process is rising over time, although with significant regional variations. In order to explore these variations, structural characteristics of the labour market together with some policy variables are included in the second-stage estimation. Various structural variables have different impact on the matching efficiency, while policy variables are mostly positively correlated with it. For instance, both active labour market programs and the number of high-skilled employees in regional employment offices positively affect matching efficiency. Additionally, when regional income per capita is included in the model, it shows positive impact on the matching efficiency, indicating that demand fluctuations predominantly affect the matching process. Finally, in order to get consistent estimates, panel stochastic frontier model transformation is applied. The obtained results show that there is no major difference in estimated mean technical efficiency coefficients in comparison to the original estimation.

What Affects Efficiency in Labour Market Matching at Different Territorial Aggregation Levels in Poland?

“…This finding was in line with those for other countries (Fahr and Sunde, 2001;Anderson and Burgess, 2000). Our finding of increasing efficiency of matching in a post-transition economy confirmed what Tomić (2014) found for another such economy -Croatia. It shows positive long-run structural change occurring in these markets.…”

An Estimated Search and Matching Model of the Croatian Labor Market: Post-crisis Analysis

“…Šergo, Poropat, and Gržinić (2009) observe the Croatian labor market in the period between 1990 and 2008, verify the existence of a negatively-sloped Beveridge curve, and show that the labor market has been showing greater matching efficiency since the 1990s, indicating a positive development of the labor market. Confirming this result, Tomić (2014b) explores the efficiency of the matching process on the labor market in Croatia and shows that the matching efficiency has increased over time, but with significant variations among regions.…”

Efficency of Regional Labour-Markets in Croatia

“…Učinkovitost procesa usklađivanja (engl. matching process) nuđenih i traženih poslova na razini regija raste, iako značajno oscilira od regije do regije (Tomić, 2014). Regionalne stope nezaposlenosti te udio nižekvalificiranih radnika u nezaposlenima imaju najveći negativan učinak na učinkovitost procesa usklađivanja, dok, s druge strane, aktivne mjere politike zapošljavanja i udio visokoobrazovanih radnika u zavodima za zapošljavanje podižu učinkovitost (Tomić, 2014).…”

“…matching process) nuđenih i traženih poslova na razini regija raste, iako značajno oscilira od regije do regije (Tomić, 2014). Regionalne stope nezaposlenosti te udio nižekvalificiranih radnika u nezaposlenima imaju najveći negativan učinak na učinkovitost procesa usklađivanja, dok, s druge strane, aktivne mjere politike zapošljavanja i udio visokoobrazovanih radnika u zavodima za zapošljavanje podižu učinkovitost (Tomić, 2014). Od ulaska Hrvatske u Europsku uniju te izlaska iz recesije, tržište rada u Slavoniji postaje napetije, pri čemu broj slobodnih radnih mjesta za visokoobrazovane premašuje broj nezaposlenih s visokim obrazovanjem, a isto se može vidjeti i za neka zanimanja koja traže nižu kvalifikaciju (Christiaensen, Ferré, Rubil, Matkovic i Sharafudheen, 2019).…”