Influence of Institutional Factors on Structural and Cyclical Unemployment in the Countries of the Visegrad Group

Abstract

The aim of the article is to describe effects of selected institutional factors on structural and cyclical unemployment. The theoretical and methodological basis of institutional aspects of the labour market functioning draws from a number of previously published studies. Factors are modified for national conditions of the Visegrad Group (hereinafter V4). The article compares NAIRU estimates of previously fine-tuned models with estimates of models extended by selected institutional factors. The difference between these groups will then be compared with development of relevant variables of the real economy. That will allow us to determine whether the institutional factor influenced structural or cyclical unemployment. We will also specify the intensity of its negative influence on the two types of unemployment. The final results of the analysis are compared with results of previous studies and world literature data.