Labour market flexibility as an important adjustment mechanism for the integration of the Czech Republic into the European Monetary Union
|Author:||Bc. Jitka Lešanovská|
|Year:||2008 - summer|
|Leaders:|| PhDr. Michal Hlaváček Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:|| Integration of the Czech Republic will lead to the acceptation of the common currency Euro. Whether the integration into monetary union will be more advantageous than costly for the Czech Republic depends significantly on the labour market. Its importance increases when an asymmetric shock occurs. If the labour market is flexible it is able to act as a particular adjustment mechanism and it will help to improve the unfavourable economic situation.
On the basis of the above mentioned arguments, I examine whether the Czech labour market is flexible with respect to wage flexibility and labour force mobility. On the basis of the results from the first part of this paper, I discuss the institutions that can be the source of the limited flexibility of the Czech labour market and discover those which have this impact (social benefits, regulated rental and employment protection legislation).