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Labour market resilience, bottlenecks and spatial mobility in Croatia
Malmö University, Faculty of Education and Society (LS), Department of Society, Culture and Identity (SKI). Malmö University, Institute for Urban Research (IUR).ORCID iD: 0000-0003-0018-8720
Institute for Public Finance, Zagreb, Croatia.
2020 (English)In: Eastern Journal of European Studies, ISSN 2068-651X, E-ISSN 2068-6633, Vol. 11, no 2, p. 5-25Article in journal (Refereed) Published
Abstract [en]

After the Great Recession, unemployment rose quickly. During 2013–2014, Croatia noticed unemployment rates above 17%, which were way over the EU 28 average. Today, Croatia instead experiences bottlenecks on the labour market: Job vacancies are increasingly lacking suitable skilled candidates. Thus, the Croatian labour market adapts badly to both recession and to a booming economy; namely, the Croatian labour market has low resilience. An economy with high labour market resilience can benefit from a booming economy, while an economy with the opposite faces wage inflation and loss of competitiveness. This article aims to analyse and discuss the role of labour mobility in reducing labour market bottlenecks and thereby increasing labour market resilience in Croatia. The method is tentative, and we use secondary, national, and international data and previous studies and findings. As we will show, the government has acknowledged skill shortages, and there are some (minor) reforms dealing with them. However, the connection between spatial mobility and labour market resilience in Croatia has not been noticed. Herein lies the novelty of this article. In this study, we find that Croatia has very low residential mobility, which we believe explains Croatia’s low labour market resilience. Croatia’s low mobility can be explained by tradition as well as by high transaction costs of moving. Our policy recommendations are (1) to lower transaction costs and simplify the moving process and (2) to increase occupational mobility through lifelong education and adult learning.

Place, publisher, year, edition, pages
Centre for European Studies within Alexandru Ioan Cuza University of Iași , 2020. Vol. 11, no 2, p. 5-25
Keywords [en]
labour market, bottleneck, resilience, spatial mobility
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:mau:diva-38985ISI: 000605001800001OAI: oai:DiVA.org:mau-38985DiVA, id: diva2:1514508
Available from: 2021-01-05 Created: 2021-01-05 Last updated: 2023-11-13Bibliographically approved

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https://ejes.uaic.ro/articles/EJES2020_1102_HAK.pdf

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Håkansson, Peter Gladoic

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CiteExportLink to record
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Citation style
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