Efficiency of Labour Market Policy Changes in the Czech Republic and Sweden in 2006-2015

Abstract

The paper is aimed at assessing efficiency of adopted measures of the concept of flexicurity in Sweden and Czech Republic in 2006-2015. It examines hypothesis that the matching process can be made more efficient by increasing the labour market flexibility. The Beveridge curve depicting the relationship between the unemployment and job vacancies is used to demonstrate a change in efficiency of labour market policies. The correlation analysis is used to address possible reasons for weaknesses of active labour market policies. Research findings show a better efficiency of the matching process in a rigid labour market, with the hypothesis being confirmed only for Czech Republic. However, the Czech labour market was fighting against higher imbalances than the Swedish one, throughout the whole period under review, with the most threatened unemployed having been both young and older people.