Shocks and rigidities as determinants of CEE labour markets’ performance

Bukowski, Maciej; Koloch, Grzegorz; Lewandowski, Piotr

doi:10.1111/ecot.12017

Cited by 3 publications

(2 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…By using stationarity tests they found that the unit root hypothesis could be rejected after controlling for structural changes and business cycle effects. (Bukowski et al, 2013) investigated the impact of shocks and the rigidities of the labour market in Central and Eastern European transition countries and concluded that the labour demand shocks were the main determinant of unemployment variability in the short run, but also found the wage rigidities being very important factors.…”

Section: A Review Of Previous Researchmentioning

confidence: 99%

Analysis of Hysteresis in Unemployment Rates with Structural Breaks: the Case of Selected European Countries

Marjanović

Mihajlović

2014

View full text Add to dashboard Cite

In recent years, unemployment has become a major problem in many countries. The fluctuations of the unemployment rate as well as its persistence in some countries impose challenges to economic policy makers. In order to implement appropriate policy measures, it is necessary to know the exact character of the unemployment in the observed countryis it structural or cyclical. In the context of economic theory, it is important to examine which concept better represents the behaviour of the unemployment ratesthe concept of the natural rate of unemployment or hysteresis hypothesis. The character of unemployment is also influenced by some characteristics of a country under consideration. Therefore, the article examines the presence of hysteresis in monthly unemployment rates from January 2000 to January 2013 in two groups of countries: the selected European OECD countries and selected Central and Eastern European countries in transition. The analysis was conducted by using univariate and panel unit root tests and the structural break analysis. Although the hysteresis hypothesis cannot be rejected for the majority of the countries, when using univariate and panel unit root tests, the results of the structural break analysis indicate that the hysteresis hypothesis can be rejected in the case of OECD countries. In other words, the natural rate of unemployment better represents the movement of unemployment rates in this group of countries in the overall period. On the other hand, the hysteresis hypothesis cannot be rejected in the case of countries in transition. The presence of hysteresis effects in the countries in transition indicates that the application of economic policy directed to the demand side of the economy might have positive effects on reduction of unemployment. In OECD countries it is necessary to implement the institutional measures which could affect the bargaining power of labour unions, unemployment benefits, labour market flexibility, and so on.

show abstract

Section: A Review Of Previous Researchmentioning

confidence: 99%

Analysis of Hysteresis in Unemployment Rates with Structural Breaks: the Case of Selected European Countries

Marjanović

Mihajlović

2014

View full text Add to dashboard Cite

show abstract

“…Such questions have been mainly studied econometrically by, e.g. Layard et al (1991), Blanchard and Wolfers (2000), Nickell et al (2005), Bassanini and Duval (2006), Bukowski et al (2013), while DSGE applications have been rare. Our approach follows, e.g.…”

Section: Introductionmentioning

confidence: 99%

Labour market fluctuations in GIPS – shocks vs adjustments

Antosiewicz

Lewandowski

2017

IJM

Self Cite

View full text Add to dashboard Cite

Purpose The purpose of this paper is to identify factors behind cyclical fluctuations and differences in adjustments to shocks in Greece, Italy, Portugal and Spain (GIPS) and a reference country – Germany. The authors try to answer the question whether the GIPS countries could have fared differently in the Great Recession if they reacted to shocks affecting them like a resilient German economy would have. Design/methodology/approach The authors use a DSGE model of real open economy with search and matching on the labour market and endogenous job destruction, estimated separately for each country. The authors calculate impulse response functions, historical decompositions and perform counterfactual simulations of the response of the German model to the sequence of shocks identified for each of GIPS. Findings The authors find that all GIPS countries were more vulnerable to productivity and foreign demand shocks than Germany. They would have experienced lower macroeconomic volatility if they reacted to their shocks like Germany. Employment (unemployment) rates in GIPS would have been less volatile and higher (lower) during the Great Recession, especially in Spain and Greece. Real wage volatility would have been higher, especially in Spain and Portugal. Originality/value The trade-off between unemployment and wage adjustments vis-à-vis Germany was the largest in Spain, which also would have experienced lower variability of job separations and hirings. The evolution of the labour market in Greece and Portugal was driven rather by its higher responsiveness to GDP fluctuations than in Germany, whereas Italy emerges as the least responsive labour market within GIPS.

show abstract

Structural problems of the Czech economy

Loužek

SkopeČek

2015

Post-Communist Economies

View full text Add to dashboard Cite

Shocks and rigidities as determinants of CEE labour markets’ performance

Cited by 3 publications

References 42 publications

Analysis of Hysteresis in Unemployment Rates with Structural Breaks: the Case of Selected European Countries

Analysis of Hysteresis in Unemployment Rates with Structural Breaks: the Case of Selected European Countries

Labour market fluctuations in GIPS – shocks vs adjustments

Structural problems of the Czech economy

Contact Info

Product

Resources

About