Crucial problem of firms in the Czech labour market would be a puzzle for Arthur Okun
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26482789%3A_____%2F19%3AN0000040" target="_blank" >RIV/26482789:_____/19:N0000040 - isvavai.cz</a>
Result on the web
<a href="https://www.aauni.edu/data/files/2019-ifrs-conference-proceedings-v5.pdf" target="_blank" >https://www.aauni.edu/data/files/2019-ifrs-conference-proceedings-v5.pdf</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Crucial problem of firms in the Czech labour market would be a puzzle for Arthur Okun
Original language description
The aim of this paper is to assess the validity of Okun's law for the situation of firms in the economy of a country, where the actual rate of unemployment is lower than natural rate of unemployment. Example is the contemporary situation in the Czech Republic. The rate of unemployment lower than natural rate of unemployment affects production and sales of firms and the economic growth of the country negatively. Okun's law is not outdated but its validity is limited. It cannot be applied to solve imbalances in the labour market generally. In the Czech Republic the market needs both, actions on the part of companies and government assistance in its macroeconomic policy. Situation in the labour market is an important "leading" economic indicator. Imbalance in the market as higher demand for labour than supply is a challenge for firms (higher wages are a competitive advantage but lead also to higher costs) and for government institutions (support for firms is expensive and can be controversial, e.g. support for immigrants as a workforce). Reducing the analysis of the economic growth on the influence of one factor (unemployment) is dangerous. In addition to the labour market, another important macroeconomic indicator should be considered, Firms profitability is influenced by other factors as well, namely changes in the price level.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
N - Vyzkumna aktivita podporovana z neverejnych zdroju
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Conference Proceedings 7th International Scientific ConferenceIFRS: GLOBAL RULES & LOCAL USE- BEYOND THE NUMBERS
ISBN
978-80-87956-96-0
ISSN
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e-ISSN
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Number of pages
14
Pages from-to
254-267
Publisher name
Metropolitan University Prague Press & Anglo-American University
Place of publication
Praha
Event location
Praha
Event date
Oct 10, 2019
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000649685400020