Wage and Employment Adjustments in Czech Local Labor Markets
| Author: | Bc. Nikola Stavarová |
|---|---|
| Year: | 2021 - summer |
| Leaders: | Mgr. Barbara Pertold-Gebicka M.A., Ph.D. |
| Consultants: | |
| Work type: | Bachelors |
| Language: | Czech |
| Pages: | 52 |
| Awards and prizes: | |
| Link: | https://dspace.cuni.cz/handle/20.500.11956/147813 |
| Abstract: | This work aims to test the hypothesis of whether interregional migration is motivated by the level of wages. More specifically, whether people are moving to regions with higher average wages. In the analysis, we used data from 14 regions of the Czech Republic for the period from 2009 to 2018. We created a model where the dependent variable was net migration and the main independent was a wage. We've added more variables for more accurate estimates. We also created a combined variable of wages and living costs, the so-called part of the wage for costs. Costs were represented by either the price of housing or the price of food. In some models, we used these variables as the main ones examined instead of wages. We estimated all models by using fixed and random effects and then compared them by the Hausmann test. Due to the character of Prague as a deviation, we divided the models according to whether they are estimated for all regions or with the omission of the capital. The results showed a significant positive wage coefficient in the case of models without Prague. Also part of the wage for housing was significant and positive in the models estimated by random effects and part of the wage for food was estimated significant and positive with the omission of Prague. So the hypothesis was confirmed in models without Prague and the positive effect of wages was not completely dampened even by the cost of living. |
