Work detail

Regional Unemployment Analysis: Case of the Czech Republic

Author: Bc. Michal Šoltés
Year: 2014 - summer
Leaders: Jakub Matějů
Consultants:
Work type: Bachelors
Language: English
Pages: 63
Awards and prizes: B.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good bachelors diploma thesis.
Link: https://is.cuni.cz/webapps/zzp/detail/137723/
Abstract: In this thesis, I examine the development of regional unemployment in the Czech Republic in the past 2
decades. The statistics show that there are differentials among the regional unemployment rates. The
differentials in the Czech Republic seem to be one of the highest in Europe. More importantly, the
differentials appear to be persistent as the disparity is stationary and there are cointegrating vectors
among the regional unemployment rates. One of the possible explanation could be the different
processes of setting long-run equilibrium in regional unemployment rates. In some regions, the
behaviour of unemployment is consistent with the NAIRU hypothesis, thus the long-run equilibrium is
not affected by economic shocks. On the other hand, I also find regions in which the data support
unemployment Hysteresis and path dependent equilibrium of unemployment rate. Moreover, most of the
time, the distribution of unemployment over the regions appears to be symmetrical around its mean i.e.
there is a comparable amount of regions with higher and lower unemployment rates

Partners

Deloitte
McKinsey & Company
Moneta Money Bank

Sponsors

CRIF
ČSOB