New RILSA Policy Brief: labour productivity discrepancies between Czech regions
The policy briefs issued by RILSA provide a brief summary of the expert knowledge and qualified recommendations relating to current social policy topics.
RILSA Policy Briefs No. 6 / 2023 – The driving forces of labour productivity discrepancies between Czech regions – by Umut Ünal, Head of the Macroeconomic Analysis Department at the Research Institute for Labour and Social Affairs (RILSA), provides a brief summary of the findingsof the rigorous examination of labour productivity convergence patterns at the regional and sectoral levels across the Czech Republic.
The results revealed no evidence of convergence across the Czech Republic; rather, widespread evidence was discovered of divergence, thus supporting the existence of convergence clubs across regions.
In addition, an investigation was conducted of the factors that drive convergence clubs. The findings revealed that physical capital plays a more important role than human capital across Czech regions. The following recommendations were proposed based on the findings:
1) To prioritise investment in physical capital by offering tax incentives, subsidies and infrastructure improvements;
2) To focus on enhancing the development of human capital in specific sectors by improving access to tertiary education, vocational training and tailored skill development programmes;
3) To encourage interdisciplinary cooperation, knowledge exchange and the alignment of education with the needs of industry, emphasising the creation of partnerships between educational institutions and businesses.