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Non-uniformity of job-matching in a transition economy- a nonparametric analysis for the czech republic

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1999-01
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In this study, we explore the properties and development of the matching technology in the Czech Republic during the transition to a market economy. Nonparametric additive modelling allows us assess flexible functional forms, which comprise for instance CES and translog specifications. This enable us to evaluate the matching process locally for each combination of unemployment vacancies rather than being restricted to global coefficients. Special interest is devoted to analysis and economic determinants of regional variation in the returns to scale of the marching function. We find non-linearities in the partial adjustment process of unemployment outflows, and a negative coefficient on vacancies in some years. Moreover, we find locally increasing returns to scale in job-marching. Returns to scale are found to be negatively correlated to the share in employment in services and to outmigration, positively correlated to the employment share in industry, the unemployment rate and various measures of active labor market policies.
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Job-matching, returns to scale, nonparametric analysis, separability, marginal integration, Czech Republic
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