<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>In this paper, we are trying to compare the labor market regulation in the Czech Republic and Austria and its structural parameters that characterize the given labor markets. In order to do that, we estimate the New-Keynesian model with matching frictions and nominal wage rigidities. Labor market regulation is proxied by worker's bargaining power over the wage. This main parameter is moving inside the interval and express a share of the total surplus that arises from filling the vacancy. In fact it expresses the state of who gains more from the added value that the vacancy is filled (worker or employer). Results indicate that workers in Austria and the Czech Republic have almost the same bargaining power that arises from the labor market settings.</p></abstract>

In this paper, we are trying to compare the labor market regulation in the Czech Republic and Austria and its structural parameters that characterize the given labor markets. In order to do that, we estimate the New-Keynesian model with matching frictions and nominal wage rigidities. Labor market regulation is proxied by worker's bargaining power over the wage. This main parameter is moving inside the interval and express a share of the total surplus that arises from filling the vacancy. In fact it expresses the state of who gains more from the added value that the vacancy is filled (worker or employer). Results indicate that workers in Austria and the Czech Republic have almost the same bargaining power that arises from the labor market settings.

Labor Market Regulation and its Characteristics: Comparison Between Czech Republic and Austria

Department of Economics, Faculty of Economics and Administration, MU, Lipová 41a, Brno

Review of Economic Perspectives

In this paper, we are trying to compare the labor market regulation in the Czech Republic and Austria and its structural parameters that characterize the given...

Labor Market Regulation and its Characteristics: Comparison Between Czech Republic and Austria

Published Online: Jul 04, 2011

Page range: 93 - 120

DOI: https://doi.org/10.2478/v10135-011-0009-8

Keywords
worker's bargaining power, labor market search, wage rigidities

This content is open access.

Labor Market Regulation and its Characteristics: Comparison Between Czech Republic and Austria

Published Online: Jul 04, 2011

Page range: 93 - 120

DOI: https://doi.org/10.2478/v10135-011-0009-8

Keywordsworker's bargaining power, labor market search, wage rigidities

This content is open access.

Keywords
worker's bargaining power, labor market search, wage rigidities