Cross-Sectional Analysis Of Regional Labour Markets In The Czech Republic

The purpose of this paper is to provide an additional empirical information about a cross-sectional analysis of the modified Phillips curve in all regions in the Czech Republic over the period 1992 - 1996. Modified Phillips curve explains the influence of the registered unemployment rate or v-rate (number of job applicants vacancies unemployment) on the level of an average wage cross-sectionally. Such a dependence is investigated as a linear relationship including a modification with a weighted variable which expresses the significance of the particular districts. Further attention is devoted to a non-linear transformation based on a reciprocal or logarithmical function of the unemployment rate. We attempted to eliminate the problems occurring during the verification of the previous models by an application of a linear function by parts. The next part of the paper deals with a cross-sectional analysis with the aim to explain the inspected dependencies more precisely.