Open Access
Article
SciPap-1384
Panel Data Analysis of CEE and SEE Determinants of Unemployment
by
Jurica Bosna 1,* 
1 Department of Economics, University of Zadar, Splitska 1, Zadar 23 000, Croatia
* Authors to whom correspondence should be addressed.
Abstract: This paper deals with a comparative analysis of the determinants of unemployment in CEE and SEE countries. The comprehensive analysis for the observed period from 2002 to 2019 provides important insights into the homogeneity of the determinants of unemployment and the efficiency of the labour markets of CEE and SEE countries, thus contributing to the existing literature. As determinants of unemployment in CEE countries the analysis confirmed the importance of unemployment from the previous period, GDP, public debt, labour force participation rate, self-employment and the population aged between 15 and 64, while the importance of unemployment from the previous period, GDP and the population aged between 15 and 64 were confirmed as determinants of unemployment in SEE countries. The demographic factor had an exceptionally strong impact on the reduction of unemployment in CEE and SEE countries – population aged between 15 and 64, which is a devastating fact and a great challenge that the observed countries will have to manage. Without effective demographic policies, labour market policies, education system in line with market needs, investment in research and development, and the systematic promotion of a culture of entrepreneurship and innovation, it will be difficult to increase the efficiency of the labour market in the long run and achieve sustainable economic growth.
Keywords: Unemployment, Labour Market, Panel Data Analysis, Flexibility, Demography
JEL classification: E02 - Institutions and the Macroeconomy, J01 - Labor Economics: General, J11 - Demographic Trends, Macroeconomic Effects, and Forecasts
Received: 22 September 2021 / Revised: 10 February 2022 / Accepted: 31 March 2022 / Published: 26 April 2022
