LABOUR MARKET RESPONSE TO ECONOMIC CRISIS IN CENTRAL EUROPE: IS THERE ROOM FOR COMMON POLICY APPROACH?

Our analysis confirms a lower degree of fluidity on Polish/Czech labour markets compared to Austria. In particular, we find evidence on higher employment rigidity and on lower employability of unemployed in Poland and Czech Republic. The major employment policy challenge faced by Poland and the Czech Republic is actually embodied in much lower job finding prospects of both prime-age and young unemployed in comparison with Austria. In addition, Austrian school-leavers, university graduates or those re-entering the labour market after parental leave are much more likely to find a job than young labour market entrants in the two remaining countries. Finally, Austrian labour market appears to be most flexible also when comparing the contributions of particular gross flows to unemployment rate dynamics.