Wybrane determinanty regionalnych różnic w poziomie bezrobocia w Czechach i Słowacji
Selected determinants of regional disparities in unemployment rates in Czechia and Slovakia

Summary/Abstract: Despite long-term transformation and development processes, unemployment remains one of the key socio-economic challenges in the countries of Central and Eastern Europe. The aim of the study presented in the article is to assess the influence of the lagged unemployment rate and regional GDP dynamics on the geographical variation in the unemployment rate in Czechia and Slovakia. The study employed descriptive statistics, the unemployment rate growth equation, ordinary least squares (OLS), generalised method of moments (GMM) and fixed effects models. The analysis was based on data for the years 1995–2022 from statistical offices of Czechia and Slovakia. Prague recorded the highest GDP and the lowest unemployment; Bratislava could also boast high GDP and low unemployment rates. In both the OLS- and GMM-estimated unemployment growth equations (with some exceptions), the previous unemployment rate had a statistically significant impact on its increase. GDP growth in Czech and Slovak regions generally reduced the increase in unemployment rates. The results of the analyses provide a basis for formulating practical recommendations regarding the directions of the development of regional and economic policies.

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