The Factors of Labor Demand Changes: Evidence from the Slovak Republic
The Factors of Labor Demand Changes: Evidence from the Slovak Republic

Summary/Abstract: The dynamic changes in Slovak industry significantly influenced the labor market as well as the demand for individual skill levels. Despite the favorable output growth, the unemployment remained one of the most important problems of the Slovak economy. The aim of this paper is to evaluate the impact of factors on skill structure of labor demand in the case of Slovak republic and to compare their evidence for different industry types (manufacturing and services). The traditional approach is applied using the concept of translog cost function. The results indicate that the factors the most influencing the labor demand in Slovakia are the wages and prices of intermediate inputs as well as growing influence of offshoring activities. Interestingly, the effect of capital is not as pronounced as expected.

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