Labour market efficiency and emigration in Slovakia and EU neighbouring countries

Abstract

Slovakia has experienced a six-year period of decreased labour market efficiency during a post-crisis period and growing emigration flows before and after a post-crisis period. There is also the concurrent issue of the lack of sufficient business activities in the southern, northern and eastern regions, and the economic development of some of the Slovak regions lacks diversification. We have analysed labour market conditions and emigration trends in Slovakia and EU neighbouring countries. The analysis of emigration trends has shown that among EU neighbouring countries, the Slovak migrant population tends to migrate mostly to the Czech Republic. We conducted regression analysis with the use of the ordinary least squares method to identify the main drivers affecting emigration from Slovakia to the Czech Republic as the primary destination country for Slovak migrants. The analysis has revealed that unemployment rates in both countries, labour market regulation which was introduced in the Czech Republic as well as EU enlargement in 2004 are the most significant triggers for emigration in Slovakia. Based on the results obtained, we have discussed possible ways to stimulate economic growth and prevent future emigration from Slovakia.

Keywords:

• Labour market efficiency
• emigration
• unemployment
• pooled OLS

JEL CLASSIFICATIONS:

• J6
• J4
• F15
• F22

Disclosure statement

The authors declare no conflict of interest.

Additional information

Funding

This work was supported by the Vega research project no. 1/0037/20: ‘New challenges and solutions for employment growth in changing socio-economic conditions’ and VEGA research project no. 1/0287/19 ‘Integration of immigrants in EU countries from the point of view of migration policies’.