Crucial problem of firms in the Czech labour market would be a puzzle for Arthur Okun

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

Crucial problem of firms in the Czech labour market would be a puzzle for Arthur Okun

Popis výsledku v původním jazyce

The aim of this paper is to assess the validity of Okun&apos;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 Okun&apos;s law is not outdated but its validity is limited.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 &quot;leading&quot; 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.

Název v anglickém jazyce

Crucial problem of firms in the Czech labour market would be a puzzle for Arthur Okun

Popis výsledku anglicky

The aim of this paper is to assess the validity of Okun&apos;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&apos;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 &quot;leading&quot; 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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Conference Proceedings 7th International Scientific ConferenceIFRS: GLOBAL RULES &amp; LOCAL USE- BEYOND THE NUMBERS

ISBN

978-80-87956-96-0

ISSN

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e-ISSN

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Počet stran výsledku

14

Strana od-do

254-267

Název nakladatele

Metropolitan University Prague Press &amp; Anglo-American University

Místo vydání

Praha

Místo konání akce

Praha

Datum konání akce

10. 10. 2019

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000649685400020